Moscow, Russia - December 9, 2005 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, announced today that the company's CEO and controlling shareholder, Vladimir Evtushenkov, distributed a part of his stake representing a total of 1% of all shares outstanding to the company's directors and top management. In this way, Mr. Evtushenkov has made a personal contribution towards the incentive program for the company's Board members and top executives.

As a result, the senior executives below received the following shareholdings:

Vyacheslav Kopiev, Deputy Head of the Board of Directors: 0.2%

Mr. Kopiev joined Sistema as Vice President in 1997. He has been a Director since 2001 and in 2003 became Deputy Chairman of the Board.

Nikolay Mikhailov, Member of the Board of Directors: 0.1%

Mr. Mikhailov has been a Member of the Board of Sistema since 2000 and in 2001 served as Adviser to the Chairman.

Levan Vasadze, First Vice-President, Chief Strategy Officer: 0.3%

Mr. Vasadze joined Sistema in 1998 as Vice President and in 2000 was appointed First Vice President, Head of Strategy and Development of Sistema.

Alexey Buyanov, Senior Vice-President, CFO: 0.2%

Mr. Buyanov joined Sistema in 1994 and initially occupied various posts at the Property Complex. Having also worked at MTS in the capacity of Vice President, in 2002 Mr. Buyanov became Senior Vice President and Chief Financial Officer..

Sergey Drozdov, Senior Vice-President, Head of Property: 0.2%

Mr. Drozdov has been working with Sistema since 1995, where he managed the Department of Development and Investments. In September 2002, he became Director and Senior Vice President, Head of Property.