Moscow, Russia – March 30, 2012 – Sistema JSFC (“Sistema”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that Sistema Shyam TeleServices Limited (SSTL), Sistema’s subsidiary that operates its telecom services under the MTS brand in India, held an Extraordinary General Meeting (EGM) today passing a resolution to increase its authorised capital from INR 60 billion to INR 120 billion (approximately US$ 2.36 billion) by issuing Non-Convertible Redeemable Preference Shares to the extent of INR 60 billion (approximately US$1.18 billion).

In the same meeting, the shareholders also authorised the Board of Directors of SSTL to issue the said Preference Shares to investors in one or more tranches based on SSTL’s development requirements. No change in the voting equity structure of SSTL is expected as a result of the increase in its share capital. Proceeds from any such issuance will be used for SSTL’s general corporate purposes.