Moscow, Russia – May 18, 2009 – Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which manages large companies operating in different industries, today announced the appointment of Ron Sommer, member of the Board of Directors of Sistema, as the First Vice President of Sistema and Head of its Telecommunications business unit. Mr. Sommer’s appointment is expected to be confirmed at the next meeting of the Board of Directors.

Vladimir Evtushenkov, Chairman of the Board of Directors at Sistema, commented: “I have known Ron Sommer since he worked at Deutsche Telekom and view him as one of the most experienced and outstanding managers in the telecommunications industry today. His excellent performance as a member of the International Advisory Board of Sistema, as well as an independent director of the corporation with the oversight of the development of telecommunications group’s strategy, has contributed to the growth of our telecommunications business from a start up into a global operator. In particular, I am grateful for his role in developing MTS into a leading mobile operator in Eastern Europe. I am convinced that under the leadership of Ron Sommer Sistema’s telecommunications and media business will achieve a new, significantly higher level of development and realise its full potential as a global telecom operator.”

Leonid Melamed, President and Chief Executive Officer of Sistema, added: “I am confident that Ron Sommer will further develop Sistema’s telecommunications business into the most efficient and customer oriented operator with an innovative platform of convergent services and advance Sistema’s position as a global telecom services provider.”

Ron Sommer commented: “I am honored to be appointed as the First Vice President of Sistema and Head of telecommunications and media business, and excited by the great potential of the Group’s telecom portfolio. I look forward to working more closely with Sistema’s highly accomplished management team.”

The telecommunications and media companies of Sistema serve over 90 million customers in 7 countries. Sistema’s telecommunications and media portfolio includes MTS, the leading mobile operator in Russia and the CIS; Comstar-UTS, the largest alternative fixed line operator in Russia; Sistema Shyam Teleservices Ltd., the fast growing pan-Indian mobile operator; and Sistema Mass Media, one of the leading media content providers in Russia.

Biography:

Ron Sommer was born in 1949. In 2005 he was elected to the Board of Directors at Sistema as an independent director. Since 2003 he worked as Chairman of the International Advisory Board at Sistema. Between May 1995 and July 2002, he was CEO of Deutsche Telekom AG. From 1980 to 1995, Ron Sommer held a number of positions with Sony Corporation, including as CEO of Sony Deutschland, COO of Sony Corporation of America and COO of Sony Europe. Ron Sommer received his PhD degree in mathematics from the University of Vienna.

Ron Sommer is a member of the Board of Directors of Motorola, Tata Consultancy Services, Weather Investments, Munich Reinsurance and a member of the International Advisory Board of Blackstone Group.