Moscow, Russia - May 31, 2012 - Sistema JSFC ("Sistema" or the "Company") (LSE: SSA), the largest diversified publicly-traded investment company in Russia and the CIS, today announces that it intends to give irrevocable instructions to brokers acting on its behalf in connection with a buyback programme (the "Programme") in respect of Sistema's Global Depository Receipts ("GDRs") and ordinary shares ("Shares"). The Programme will be for the buyback of US$ 300 million of GDRs and Shares (with a substantial majority allocated to the purchase of GDRs). The instructions will be valid from June 6, 2012 until October 15, 2012. Purchases of Shares and GDRs pursuant to the Programme will be conducted within certain pre-set parameters and in line with general market practices regarding volume and price limitations.

Shares and GDRs will be acquired via, and held by Sistema subsidiaries. Upon completion of the Programme, Shares and GDRs purchased will be held by Sistema subsidiaries until a decision concerning their utilization is made in the future.  An announcement about any such decision will be made when appropriate.

No purchases of Shares or GDRs are intended to be made in the United States.

The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.