Moscow, Russia - October 30, 2007 - 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 that it has approved the development strategy for its Healthcare Services division.

The division's assets are being integrated into the "Medsi Companies Group" holding structure, and comprise the Medsi clinic (out-patient clinic for adults), the Medsi-II clinic (out-patient clinic for children), the American Hospital Group (a family clinic operating under the "American Medical Centres" brand for VIP clients and expatriates), and MedExpress (a chain of private healthcare facilities in Russia including 23 clinics in Moscow and the regions, and an ambulance service in Moscow).

The Medsi Companies Group is 100% owned by Sistema and will comprise 14 clinics in Moscow and 12 clinics in the regions.

Sistema intends to create a chain of 100 clinics by 2011, which will provide a full range of paid-for services encompassing preventive treatment, diagnostics and clinical treatment.  The clinics will operate under a unified brand, format and set of standards. Sistema plans to invest approximately US$ 100 million per year in the development of the Group of healthcare services companies.

Vladimir Gurdus, Professor and Doctor of Medicine and General Director of the Medsi Companies Group, commented: "We intend to provide high quality medical services to clients, and to provide treatment for a wide range of medical conditions and healthcare concerns. We are paying particular attention to the location of the clinics, in order to ensure close proximity to clients' homes and work places."

Alexander Goncharuk, President and Chief Executive Officer of Sistema, added: "The paid-for healthcare services sector is one of our key areas for growth. The healthcare services market presents considerable growth opportunities and we intend to become a leading player in this fast developing market place."