Moscow, Russia - 10 July, 2008 - Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced the appointment of Maxim Uvarov as General Manager of CJSC Binnofarm ("Binnofarm"), its pharmaceutical subsidiary. Mr. Uvarov was previously the Executive Director of Sistema's, Strategy and Development Unit. Alexander Bakhutashvili, the former General Manager, is appointed as President of Binnofarm.

Mr. Uvarov will focus on managing the operations of the pharmaceutical business division and will be responsible for creating and implementing a new strategy and business development programme. Mr. Bakhutashvil, one of the founders of Binnofarm who contributed a lot into its formation, will concentrate on the implementation of R&D projects.

Leonid Melamed, President and Chief Executive Officer of Sistema, commented: "Leadership in managing our portfolio companies is one of the key elements in achieving the "5*5>25" formula. The new management appointments in non-public companies are part of a restructuring effort aimed at further increasing the efficiency of these businesses. We are confident that Maxim Uvarov's experience, which has been demonstrated in the strategic development of the pharmaceutical healthcare businesses of Sistema, will assist in strengthening Binnofarm's market position."

Maxim Uvarov has served as the Executive Director of the Strategy and Development Unit of Sistema since July 2006. Prior to that, from 2005 to 2006, he held the position of General Director of the Synthetic Crystals Holding Company CJSC.  From 2002 to 2005, Mr. Uvarov was General Director of Nutrifarm LLC. In 1999 Mr Uvarov founded Atlantic Essential Products Inc., where he held the position of President until 2006. He is a Member of the Board of Directors of Binnofarm and the Medsi Group. Mr. Uvarov graduated from the International University in Moscow with a Bachelor's degree in Finance and a Master's degree in Economics and Management. He also holds a degree in Public Relations and a Ph.D in Economics from Lomonosov Moscow State University. Mr Uvarov has also taken courses at Leon University in Spain under the "EU Economy" programme. He speaks fluent English, Spanish and Italian.