Moscow, Russia – 29 April, 2009 – Sistema (the “Group”) (LSE: SSA), the largest diversified public corporation in Russia and the CIS, which manages companies operating in the telecommunications, high-tech, oil and energy, radio and aerospace, banking, real estate, retail, mass-media, tourism and healthcare sectors, today announced its unaudited consolidated US GAAP financial results for the fourth quarter and the twelve months ended December 31, 2008.

Fourth quater highlights

· Consolidated revenues of US$ 4.0 billion

· OIBDA decreased by 39.1% year on year to US$ 873.2 million with OIBDA margin of 21.7%

· Operating income decreased by 63.2% year on year to US$ 319.2 million with operating margin of 7.9%

· Net loss of US$ 713.9 million

Full year highlights

· Consolidated revenues up 24.3% year on year to US$ 16.7 billion

· OIBDA up 11.1% year on year to US$ 5.5 billion with OIBDA margin of 32.9%

· Operating income was stable year on year and amounted to US$ 3.2 billion with operating margin of 19.0%

· Net income of US$ 62.0 million

· Total assets up 2.7% year on year to US$ 29.2 billion

Key corporate highlights after the end of the reporting period

· Acquired controlling stakes in Bashkir Oil and Energy Group for US$ 2.5 billion

· Signed an agreement with VTB Bank to sell a stake in Sistema-Hals and restructure debt of Sistema-Hals

· Sold 50% of voting shares in MTT to Synterra Group

· Successfully repaid a put option in the amount of RUB 4.5 billion (approximately US$ 130 million) on 75% of outstanding RUB 6 billion (approximately US$ 170 million) local bonds

Leonid Melamed, President and Chief Executive Officer, commented: “Sistema demonstrated strong revenue and OIBDA growth in 2008, both at a Group level and across our business units. Despite the challenging market conditions, our core businesses reported strong operating and financial results. We had already introduced and begun implementing a programme to increasing efficiency levels across the Group prior to the downturn. As a result, our key businesses have increased their profitability levels and maintained or strengthened their leading positions in their respective markets.

The cost optimisation programme has already saved a total of approximately US$ 700 million. Part of our dollar-denominated debt has also been converted into roubles, with the share of ruble-denominated loans increasing year on year  from 20% to 35%.  This has reduced our dependence on foreign exchange fluctuations. In addition, our capital investment programmes have been reduced by US$ 700 million. We continue to actively manage our investment portfolio and to focus on projects that generate attractive returns on invested capital and healthy cash flows.”

Conference call information

Sistema management will host a conference call today at 9 am (New York time) / 2 pm (London time) / 3 pm (CET) / 5 pm (Moscow Time) to present and discuss the fourth quarter and full year results.

The dial-in numbers for the conference call are:

UK/International:         + 44 20 8515 2301

US:                              +1 480 629 9723

A replay will then be available for 7 days after the conference call. To access the replay, please dial:

UK/International:         + 44 20 7154 2833

US:                              + 1 303 590 3030

PIN number:    4060094#