Sistema Acquires Further 28% Stake in Dalcombank.

MOSCOW -- Sistema (LSE: SSA) ("Sistema" or "The Group"), the largest private sector consumer services company in Russia and the CIS, today announced that it has completed the acquisition of a 28.2% stake in Dalcombank, a commercial bank based in the Far East of Russia, for a total cash consideration of US$ 11.7 million. As a result of this acquisition Sistema increased its ownership in Dalcombank to 48.16% for a combined cash consideration of US$ 20 million.

The acquisition of shares in Dalcombank is in line with the development of Sistema`s banking group, which presently comprises Moscow Bank for Reconstruction and Development (MBRD) and East-West United Bank (Luxembourg). Dalcombank is a leading bank in the Far East region of Russia with a wide retail network, which complements the existing network of the Group.

Alexander Goncharuk, President and Chief Executive Officer of Sistema, commented: "Banking business is one of the key "points of growth" for Sistema. The acquisition of shares in Dalcombank will allow us to enter several regions of the Far East at the same time and to significantly expand our client base."

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Sistema is the largest private sector consumer services company in Russia and the CIS, with over 80 million customers. Sistema develops and manages market-leading businesses in selected service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media. Founded in 1993, the company reported revenues of US$ 5.9 billion for the first half of 2007, and total assets of US$ 22.5 billion as at June 30, 2007. Sistema's shares are listed under the symbol "SSA" on the London Stock Exchange, under the symbol "AFKS" on the Russian Trading System (RTS), under the symbol "SIST" on the Moscow Stock Exchange (MSE) and under the symbol "AFKS" on the Moscow Interbank Currency Exchange (MICEX).

Dalcombank, founded in December 1988, operates in 29 cities in the Far East region: the Khabarovsk and Primorsk territories, the Jewish autonomous and Amur regions, the Republic of Sakha (Yakutia) and the Irkutsk region. In 2006 and the first half of 2007, Dalcombank opened 13 new branches and 2 mini offices in Khabarovsk, Belogorodsk, Angarsk, Nakhodka and Mongokhto. The bank's revenues increased by 36% year on year in 2006 to RUR 3.21 billion (approximately US$ 118 million) and by 8% year on year to RUR 1.6 billion (approximately US$ 61.3 million) in the first half of 2007. It had total assets of RUR 14.6 billion (approximately US$ 566.1 million) as at June 30, 2007.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.

Information contained in this announcement does not constitute a public offer or an advertisement of securities in Russia, is not an offer, or an invitation to make offers, to purchase any securities in Russia. The reverse convertible certificates have not been and will not be registered in Russia and are not intended for "placement" or "public circulation" in Russia.