Moscow, Russia– May 6, 2016 – Sistema JSFC (“Sistema” or “the Company”) (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company operating primarily in Russia and the CIS, announces that Citibank, N.A. has replaced Deutsche Bank AG as the depositary for the Company’s Global Depositary Receipt ("GDR") programmes, effective May 6, 2016. The Company and Citibank, N.A. have entered into amendments to the Regulation S deposit agreement and Rule 144A deposit agreement, each dated October 22, 2012 and relating to the GDR programmes (as amended, the "Agreements").

Sistema’s GDR holders do not need to take any action in connection with this notice.

Information regarding the new depositary:

Citibank, N.A. was originally organized on June 16, 1812, and is now a national banking association organized under the National Bank Act of 1864 of the United States of America.  Citibank, N.A. is primarily regulated by the United States Office of the Comptroller of the Currency.   Citibank, N.A.'s principal administrative offices for its Depositary Receipts Services division are located at 388 Greenwich Street, New York, New York 10013, USA.

For more information about Citibank, N.A.’s Depositary Receipt Services please visit www.citi.com/dr

Copies of the Agreements are on file with Citibank, N.A. and shall be available to Sistema's GDR holders for inspection during normal business hours on any New York business day at the specified office of Citibank, N.A.

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For further information, please visit www.sistema.comor contact: