Moscow, Russia - 16 April - Sistema-Hals (LSE: HALS), one of the largest diversified companies in the real estate market in Russia and the CIS today announces its 2006 annual results.

Highlights for 2006

·  Revenues up by 204% to US$ 283 million

·  Operating income of US$ 83 million, operating margin rose to 29%

·  OIBDA rose to US$ 90 million, OIBDA margin rose to 31.9%

·  Net income up to US$56 million

·  Total book assets increased to US$ 902 million

·  As of 1 January 2007, Cushman & Wakefield valued Sistema-Hals' interest in the sites and projects within its portfolio at over $2 billion

Felix Yevtushenkov, President, JSC Sistema-Hals, said:

"Continued rapid growth of our businesses remains our principal and driving objective. Over the course of this year, we were able not only increase our overall earnings twofold, but have also delivered on a number of the strategic objectives outlined during our initial public offering. We believe that we are well positioned in the high growth markets we serve and see significant opportunities for further growth in 2007 and beyond."