Moscow, Russia – April 21, 2011 – Sistema (the “Company”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announced that during a meeting held on April 16, 2011, its Board of Directors (the “Board”) approved a new organisational and management structure. The approved changes to Sistema’s organizational and management structure are in line with the Company’s new development strategy, which was approved by the Board in October 2010. The new strategy provides for the transition of the Group from an operational holding company to an investment company.

The new organisational structure reflects evolutionary changes to Sistema’s strategic and operational priorities. The main objective of these changes is to further improve Sistema’s ability to identify and evaluate new investment opportunities and complete any resulting transactions. Most companies within Sistema’s portfolio are expected to assume more managerial independence over operational issues by the end of 2011, with Sistema focusing on investment management issues. The four current business units – Telecommunications, Technology & Industry, Consumer, and Oil & Energy – have been combined into two business units based on the level of maturity of the various assets under management: “Base Assets” and “Developing Assets”. The “Base Assets” business unit comprises Sistema’s telecommunications and oil & energy subsidiaries. The “Developing Assets” business unit is responsible for the management of Sistema’s technology, industrial and consumer interests. During the course of this reorganisation, the Company’s headcount has been reduced by more than half.

The changes to Sistema’s organisational structure leave room for the further development and transformation of Sistema, so that it fully complies with and efficiently meets its objectives as an investment company.

The Board has also approved the following members of the Executive Board of Sistema:

• Mikhail Shamolin, President and CEO;
• Anton Abugov, First Vice President, head of Strategy and Development Functional Division;
• Ruslan Almakaev, Vice President, head of Administrative Functional Division;
• Alexey Buyanov, Senior Vice President, head of Finance and Investment Functional Division;
• Anna Goldin, Vice President, head of Legal Functional Division;
• Sergei Drozdov, Senior Vice President, head of Corporate Management Functional Division;
• Felix Evtushenkov, First Vice President, head of “Base Assets” Business Unit.

Appointment of additional members of the Executive Board may be announced in due course.