Moscow, Russia – 3 June, 2009 – Sistema (the “Group”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which manages large companies operating in different industries, today announced its unaudited consolidated US GAAP financial results for the first quarter ended March 31, 2009.

First quarter highlights

· Consolidated results impacted by 39.9% year on year appreciation of average US dollar exchange rate vs. Russian ruble in the first quarter

· Consolidated revenues of US$ 2.8 billion

· OIBDA of US$ 869.4 million with OIBDA margin of 31.4%

· Operating income of US$ 434.7 million with operating margin of 15.7%

· Net loss of US$ 395.5 million

· Net income of US$ 42.0 million, excluding losses from foreign exchange of US$ 437.5 million

Key corporate highlights after the end of the reporting period

· SSTL reached one million subscribers under MTS brand

· Signed supplemental agreements for acquisition of a controlling stake in Bashkir Oil and Energy Group for RUB 66.8 billion with no further payments being made

· Signed agreement with VTB Bank to sell a controlling stake in Sistema-Hals and agreed the terms for the restructuring of Sistema-Hals’ debt to VTB

· Appointed Ron Sommer, member of the Board of Directors of Sistema, as the First Vice President of Sistema and Head of the Telecommunications business unit

· Appointed Alexander Korsik as Head of new Oil and Energy business unit

Leonid Melamed, President and Chief Executive Officer of Sistema, commented: “Sistema has delivered on a number of significant projects in the first quarter of 2009, which have made a substantial contribution to the development of our business. We have completed the acquisition of a controlling stake in Bashkir Oil and Energy Group; established a strategic partnership with VTB, which has allowed us to further develop Sistema-Hals; simplified the structure of the Telecommunications business unit by exiting from our shareholding in MTT and consolidating STREAM-TV within Comstar-UTS, thus significantly optimising our investment portfolio and creating conditions for stable growth of our business in the future. Furthermore, we have considerably restructured Sistema’s debt and optimised administrative and general expenses. Sistema’s management team has been strengthened by highly reputable professionals: Ron Sommer now heads the Telecommunications business unit and Alexander Korsik assumed the responsibility for the newly created Oil and Energy business unit. These actions were taken in line with our stated strategy aimed at increasing shareholder value.”

Conference call information

Sistema management will host a conference call today at 9 am (New York time) / 2 pm (London time) / 3 pm (CET) / 5 pm (Moscow Time) to present and discuss the first quarter results.

The dial-in numbers for the conference call are:

UK/International: + 44 20 8515 2302

US: +1 480 629 9772

A replay will then be available for 7 days after the conference call. To access the replay, please dial:

UK/International: + 44 20 7154 2833  

US: + 1 303 590 3030

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