Moscow, Russia – February 3, 2011 – Sistema (the “Group”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies operating in different industries, today announced the appointment of Igor Varlamov as General Director of CJSC Binnopharm, a subsidiary of Sistema. Mr. Varlamov previously held the position of General Director of CJSC Apteka Holding, one of the largest pharmacy chains in Russia.

Sergey Boyev, Vice President and Head of the High Technologies and Industry business unit of Sistema, commented: “Binnofarm has reached a new stage in its development, focused on improving its operational performance, growing the distribution network and successfully participating in state tenders for pharmaceuticals. Igor Varlamov brings a wealth of experience in developing pharmaceutical companies. He will be instrumental in helping us achieve our goals and deliver on Binnofarm’s growth strategy while raising the company’s investment profile. We are grateful to Maxim Uvarov for his leadership of Binnofarm through the period of unprecedented growth and look forward to working with him in the future.”

Igor V. Varlamov was born in 1965 in Viborg, Leningrad region. Between 2001 and 2010, Mr. Varlamov held a number of positions in CJSC Apteka Holding, including General Director from 2007, Executive Director and Deputy Director of Distribution. Prior to that, between 1994 and 2001, he served as Deputy CEO of JSC Chiton. In 1987, Mr. Varlamov graduated from the Higher Military Engineering School named after A.N. Komarovsky (now Military Engineering-Technical University).

Binnopharm, a wholly-owned subsidiary of Sistema, is one of Russia’s largest pharmaceutical producers which operates the largest Good Manufacturing Practice (GPM) compliant bio-pharmaceutical plant in Russia, spanning more than 32,000 square meters. Binnopharm has in-house R&D department and advanced facilities where it manufactures tablets, capsules, ampoules, aerosols and sprays.