Moscow, Russia - October 29, 2007 - Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced the appointment of Vitaly Savelyev as First Vice President and Head of  Sistema's Telecommunications Asset Management division, with effect from November 1^st, 2007.  Mr. Savelyev is the former Deputy Economic Development and Trade Minister of the Russian Federation.

Alexander Goncharuk, President and Chief Executive Officer of Sistema, commented: "We have large-scale ambitious goals set for our Telecommunications Asset Management division. Primarily, it has to increase its operating efficiency in this highly competitive environment, partly by implementing a number of convergent projects. In addition, it has to launch an in-depth programme of regional and international expansion. We are confident that Mr. Savelyev's extensive financial management experience and thorough knowledge of the telecommunications market and new technology developments will assist in increasing the value of our assets and strengthening their position in the global telecommunications market."

Vitaly Savelyev was born on January 18, 1954. From 2004 until recently, Mr. Savelyev served as Deputy Economic Development and Trade Minister of the Russian Federation. From 2002 to 2004, he held the position of Adviser for Finance and Information Technology to the General Director of Svyazinvest. From September 2001, Mr. Savelyev served as Deputy Chairman of Gazprom, prior to which, he was Chairman of the Management Board of MENATEP. From 1993 to 1995, Mr. Savelyev was Chairman of the Management Board of Rossia Bank. From 1990 to 1993, he served as President of the USSR-US joint venture, Dialogue Invest. In 1989, Mr. Savelyev became co-founder and was elected to the Board of Directors of DialogueBank. In December 1988, he established and became the manager of the Leningrad branch of the USSR-US joint venture Dialogue, which was one of the pioneers of computer hardware and software dealerships in Russia. Vitaly Savelyev was appointed Assistant Manager of Glavleningradinzhstroy in 1987. Mr. Savelyev's career started during the construction of the Sayano-Shushenskaya Hydroelectric Power Plant, where he held a number of positions, from engineer to master designer of the KrasnoyarskGesStroy group enterprise. Vitaly Savelyev graduated in Heavy Engineering and Mechanics from Leningrad Polytechnic Institute and completed a second degree at the Palmiro Togliatti Institute of Engineering and Economics in 1986.