Moscow, Russia- May 31, 2012 - Sistema JSFC ("Sistema" or the "Company") (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that its Board of Directors (the "Board") has recommended to the Annual General Meeting of shareholders ("AGM") that the Company's Board is expanded to 13 members. The agenda for the AGM, scheduled to be held on June 30, 2012, has been updated accordingly.

The following composition of the Board is proposed:      
- Vladimir Evtushenkov       
- Alexander Goncharuk         
- Brian Dickie          
- Dmitry Zubov       
- Vyacheslav Kopiev          
- Robert Kocharyan          
- Jeannot Krecké          
- Roger Munnings         
- Evgeny Novitsky         
- Marc Holtzman          
- Serge Tchuruk      
- Mikhail Shamolin        
- David Yakobashvili
With the arrival of Brian Dickie, Jeannot Krecké and Marc Holtzman the number of Independent Directors on Sistema's Board will expand to eight.

Vladimir Evtushenkov, Chairman of the Board of Directors of Sistema, commented: "The addition of new Independent Directors on the Company's Board, who have a wealth of experience and expertise in the investment industry, will allow us to strengthen the strategic focus of Sistema as an investment company, and enhance our commitment to following best practices in corporate governance."