Moscow, Russia - October 24, 2006 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, announced today that it has completed the purchase of 2% of its stock in the amount of approximately US$ 239 million. The purchase was completed through one of Sistema subsidiaries - Sistema Finance.

As announced earlier, Sistema is establishing a share option programme for the top management of the company. The acquired shares are intended for the funding of this programme and may also be used in connection with certain future acquisition activity.