Moscow, Russia - August 2, 2007 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced changes to the Sistema Board of Directors' shareholdings in the Company.

In line with the previously disclosed remuneration structure for the members of Sistema's Board of Directors, each member's shareholding in the Company has been increased by 76 shares, or 0.0008% of the 9,650,000 total outstanding number of shares, and two Directors have been awarded their first allocation of shares to the amount of 80 shares per person. Based on the closing GDR price on the London Stock Exchange as of August 1, 2007 of US$ 30.35 per GDR, this equates to an indicative value of US$ 115,330.

• Chairman of the Board Vladimir Evtushenkov's shareholding in the Company has increased from 62.1270 % to 62.1278 %
• Director Evgeny Novitsky's shareholding in the Company has increased from 2.9966 % to 2.9974 %
• Director Alexander Leiviman's shareholding in the Company has increased from 2.7321 % to 2.7329 %
• President and CEO Alexander Goncharuk's shareholding in the Company has increased from 2.0 % to 2.0008 %
• Independent Director Alexander Gorbatovsky's shareholding in the Company has increased from 1.7832 % to 1.7840 %
• Deputy Chairman of the Board Dmitry Zubov's shareholding in the Company has increased from 1.3073 % to 1.3081 %,
• Deputy Chairman of the Board Vyacheslav Kopiev's shareholding in the Company has increased from 0.05 % to 0.0508 %
• Director Sergei Drozdov's shareholding in the Company increased from 0.02 % to 0.0208 %
• Foreign independent Directors Dr. Ron Sommer and Stephan Newhouse, who previously did not hold any shares, were each awarded 80 shares or 0.0008 % of the outstanding share capital.