Moscow, Russia – August 19, 2010 – Sistema (“The Company”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies operating in different industries, notes articles dated August 19, 2010 in the Russian press referring to the commencement of a merger between Bashneft and Russneft, plans to effect changes in the management of Bashneft and the management of Sistema’s “Oil and Energy Group” Business Unit, and the Company’s dissatisfaction with the development of the Bashneft assets and the potential transfer of the management of these assets to Mikhail Gutseriev.

While the Company generally does not comment on market rumours, in this instance the Company wishes to clarify that these reported matters do not reflect the facts or the position of Sistema’s management.