Sistema Multimedia Launches Interactive Television.

MOSCOW, Russia -- Sistema Multimedia, the digital media arm of Sistema (SSA.LI), today announced full-scale commercial launch of STREAM TV - Russia's first ADSL-based in-house entertainment offering. STREAM TV will provide customers with access to over 80 Russian and international TV channels, 4 speciality channels (Drive, Hunting and Fishing, Health and Well-being, Retro), pay-per-view and video-on-demand services, as well as Internet, computer games and 47 international and 15 Russian radio channels.

With several subscription options starting from US$9.95 per month and the ability to add new channels individually or in packages, for a day, a week or a month, STREAM TV gives its customers unmatched flexibility in managing their accounts. The equipment package, which includes an ADSL modem, a set-top box, remote control and infrared keyboard, can be purchased at the time of connection or through a 3-year instalment plan.

STREAM TV builds on the success of STREAM, Sistema's residential ADSL offering in Moscow, which was launched in Ferbuary 2004 and now has over 150,000 subscribers. The TV offering will be available to both the existing STREAM clients, and to millions of customers of MGTS and Comstar United Telesystems in Moscow. Sistema Multimedia also intends to license its own content to other regional pay-TV operators.

For further information, please visit www.sistema.ru

Sistema is the largest private sector consumer services company in Russia and the CIS, with over 35 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$ 4.1 billion for the first nine months of 2004 and total assets of US$ 7.7 billion as at September 30, 2004. Sistema's shares are listed under the symbol "SSA" on the London Stock Exchange, under the symbol "AFKS" on the Russian Trading System (RTS), and under the symbol "CUCT" on the Moscow Stock Exchange (MSE).

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.