Moscow, Russia - June 7, 2007 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that the regular meeting of the Board of Directors of Sistema Telecom has accepted the resignation of Sergey Schebetov as General Director of the Company, with effect from June 8, 2007.

The Board of Directors has appointed Shamil Kurmashov as interim General Director of Sistema Telecom with effect from June 9, 2007. Mr. Kurmashov previously held the position of Deputy General Director for Finance and Investments at Sistema Telecom.

Alexander Goncharuk, Chairman of the Board of Directors of Sistema Telecom, commented: "Under the management of Sergey Schebetov, Sistema Telecom has implemented a number of large-scale projects which have played a significant role in the development of Sistema's telecommunication assets.  We have pioneered in Russia the successful launch of an umbrella brand for all the telecommunication companies of the Sistema Group. We have made a strategic acquisition of a blocking stake in Svyazinvest and formulated its development programme. Furthermore, Sistema Telecom has achieved impressive results in increasing the operational efficiency of the Group's key assets, MTS and Comstar UTS. We want to thank Mr. Schebetov for his contribution to the development of Sistema Telecom and wish him well in his future professional career".

Shamil Kurmashov was born on December 27, 1978, in Mirny, Arkhangelsk region, Russia. From March 2006 until recently, Mr. Kurmashov was Deputy General Director for Finance and Investments at Sistema Telecom. In 2004, Mr. Kurmashov was appointed Director of Finance of Sistema Telecom. From 2002 to 2004, he served as Head of Department of Analysis of Extraordinary Situations and Risks for Open Joint Stock Company MMC Norilsk Nickel. From 2001 to 2002, he worked for Wimm-Bill-Dann as Deputy Chairman of the Management Board and Finance Director of WBD Ukraine. From 1999 to 2001, Mr. Kurmashov worked for finance and economic departments of Russian and foreign companies. Mr. Kurmashov has BA (Hons) degree from the Moscow State Institute of International Relations, Economic Relations Department. He also holds a PhD from the Central Mathematical and Economic Institute of the Academy of Sciences.