Moscow, Russia and Athens, Greece - February 13, 2006 - Concern SITRONICS, the technology arm of Sistema (LSE: SSA), and INTRACOM HOLDINGS (ASE: INTRK) today announced that the companies have reached a non-binding agreement in principal for the acquisition by Concern SITRONICS of a 51% stake in INTRACOM TELECOM for approximately EUR 120 million.

Completion of this transaction is subject to a number of conditions, such as completion of Concern SITRONICS' financial and legal due diligence, negotiation of a share purchase agreement and a shareholders' agreement and obtaining the necessary corporate and governmental approvals.

INTRACOM TELECOM is a fully owned subsidiary of INTRACOM HOLDINGS providing complete telecommunications solutions and services in the EEMEA (Eastern Europe, Middle East and Africa) region. INTRACOM TELECOM possesses and manufactures a portfolio of products in the areas of broadband fixed and wireless access and transmission systems as well as content delivery systems (IPTV, triple-play). Concern SITRONICS would seek to integrate the company into its Infocommunications Division, whose primary focus is currently on switching equipment, billing systems and NGN, and realize potential synergies from the company's complementary product lines, system integration capabilities and customer base.