Moscow, Russia - October 26, 2007 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that Moody's Investors Service has upgraded the Corporate Family Ratings of Sistema to Ba3 from B1 with a positive outlook. Moody's also upgraded the existing Sistema Capital S.A Notes and MTN programme ratings to Ba3 from B3.

Alexey Buyanov, Senior Vice President and Head of the Finance Investment Complex of Sistema, commented: "Moody's upgrade reflects Sistema's strong financial performance and sustainable profitability level, supported by the Company's key telecom assets. We are committed to further development of all our businesses in the line with our strategic objectives."