Moscow, Russia – 24 December, 2008 – Sistema JSFC (LSE: SSA), the largest diversified public corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer and technology sectors, today announced that its Board of Directors has decided to convene an Extraordinary General Meeting of its shareholders and, separately, to raise RUR 20 billion through the issue and placement of unconvertible ruble denominated bonds.

The Extraordinary General Meeting of shareholders will be convened and votes cast remotely via proxy, with February 16, 2009 as the final date for receipt of ballots.

The new bond issue will comprise 20 million unconvertible interest-bearing bonds with a face value of RUR 1,000.00 per bond and a five year maturity. The new money raised by the issue will be used for refinancing existing facilities and general working capital purposes.