Moscow, Russia – September 11, 2009 – Sistema-Hals (LSE, MICEX, RTS: HALS), one of the largest real estate development companies in Russia and the CIS, today announces its unaudited consolidated financial results for the first six months of 2009 in accordance with US GAAP.

Conditions in the Russian real estate market remain depressed and expected to remain so for the foreseeable future (the market is characterized by limited transactional activity, weak and falling asset prices, limited financing availability and an increasing number of forced sales). The net loss for the first six months of 2009 was USD 110.8 million and the Company may have net PAT losses for the 3Q2009. The management of the Company continues to take measures to increase revenues and reduce expenses and losses. In these market conditions the Company remains dependant on support from its major shareholders.

“Due to the Russian real estate market there is considerable uncertainty as to the budgeting, financing, valuation and delivery of our projects, – Igor Kascheev, President of Sistema-Hals commented. - I do believe though that Sistema-Hals with its major shareholders support and management initiatives will get over the hard time and unlock its potential for further growth and development”.

Financial highlights for the first 6 months of 2009

· The net loss of the Group amounted to USD 110.8 million for the six months ended June 30, 2009 compared to the net income of USD 8.7 million for the same period in 2008.

· For the first six months ended June 30, 2009 the revenues of the Group amounted to USD 47.7 million compared to USD 197.8 million for the six months ended June 30, 2008.

· For the six months ended June 30, 2009 the operating expenses of the Sistema-Hals Group decreased 61.5% compared to the previous period and amounted to USD 75.1 million.

· In the first half of 2009 the Group’s cost of sales decreased by 64.3% to USD 51.5 million compared to USD 144.2 million for the same period in 2008.

· The selling, general and administrative expenses of the Sistema-Hals Group decreased by 81.1% to USD 8.2 million for the first six months in 2009 compared to USD 43.4 million for the six months ended June 30, 2008.

· For the six months ended June 30, 2009 the operating loss of the Sistema-Hals Group amounted to USD 27.4 million compared to the operating income of USD 2.8 million for the six months ended June 30, 2008.

· For the six months ended June 30, 2009 the negative OIBDA amounted to USD 18.9 million compared to the positive OIBDA in the amount of USD 10.2 million for the first half of 2008.

· As of June 30, 2009 the total assets decreased by 7.5% to USD 1,753.0 million compared to the total assets in the amount of USD 1,895.7 million as of December 31, 2008.

In accordance with its announced strategy, in May 2009 Sistema-Hals exchanged its share in OJSC Mosdachtrest (assets included land plots and cottages) and ZAO Landshaft (assets included land plots) for a 100% stake in OJSC Lubyanka Development which owns the Central Detsky Mir building in Moscow. The financial results of the Asset Management business segment are reflected separately as discontinued operations in the financial statements for the first six months of 2009.