Results of Sitronics' Annual Shareholder Meeting and Board Changes

JSC SITRONICS ("Sitronics” or "The Company”) (LSE:SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS with a growing presence in other EEMEA emerging markets, today announced the resolutions made at the Annual General Meeting of its shareholders ("AGM”) held on June 26, 2007. The AGM approved the Company’s annual report and annual financial statements for 2006, as well as the allocation of 5% of the Company’s net profit to set up a reserve fund. The AGM approved the proposal of the Board of Directors not to pay an annual dividend for the twelve months ended December 31, 2006. The shareholders approved the election of the members of its Board of Directors as follows: Anton Abugov – First Vice President, Head of Strategy and Development, Sistema Yuval Almog – Senior Managing Director, Coral Capital Management Igor Busarov – Head of Treasury, Sistema Dmitry Gaev – Head of the Moscow Subway Alexander Goncharuk – President, Sistema Socrates P. Kokkalis – Chairman and CEO of Intracom Holdings Nikolay Mikhailov – Member of the Board of Directors, Sistema Denis Muratov – Vice President, Head of Innovations and Science, Sistema Vladimir Uvakin – Director of Corporate Property Department, Sistema Evgeny Utkin – President, Sitronics The shareholders approved the election of the members of the Company’s Internal Audit Committee as follows: Vasily Platoshin – Chief Accountant, Sistema Artyom Popov – Executive Director of Financial Department, Sistema Olga Shurygina – Head of Internal Control and Audit, Sistema The shareholders approved the compensation of the expenses incurred by the members of the Board of Directors in relation to carrying out their directorship duties. Deloitte & Touche CIS and Paliy & Sons were appointed as auditors for 2007. The AGM also approved the amendments to the Company’s Charter. The Amendments of the Charter specify the amount of the ordinary and authorized shares of the Company, as well as shareholders’ rights and obligations, and reflect Russian legislative requirements. The changes to the Charter include the following: 1. The Section of the Charter entitled «Charter Capital of the Company. General provision» has been amended to reflect the increase in the number of ordinary shares of JSC SITRONICS as a result of the Initial Public Offering in February 2007. 2. Certain amendments to the Section of the Charter entitled «Shareholders of the Company» have been accepted to enable shareholders to take advantage of current corporate legislation. 3. The Section of the Charter entitled «Competence of the General Meeting of Shareholders» has been updated in accordance with the new amendments to the Russian legislation. The Charter provisions have been revised to bring them in line with the best practice of corporate governance for the benefit of the Company’s shareholders. At the Board meeting following the AGM, the Board of Directors of SITRONICS appointed Denis Muratov as Chairman. The Board of Directors also approved the election of the members of SITRONICS’ Management Board as follows: Maxim Ageev – President of Kvazar-Micro Dmitry Ivanov – First Vice President and Chief Financial Officer, SITRONICS Gennady Krasnikov – Director of NIIME & Micron, Head of SITRONICS Microelectronic Solutions Alexander Lutsenko – First Vice President and Chief of Strategy, SITRONICS Evgeny Utkin – President, SITRONICS Igor Hulak – Head of SITRONICS Telecommunication Solutions Vladimir Yasinsky – First Vice President, COO, Executive Director, SITRONICS Evgeny Utkin was elected as the Chairman of the Management Board. For further information, please visit www.sitronics.com. SITRONICS is a leading provider of telecommunication solutions, including software, equipment and systems integration, IT solutions and microelectronic solutions in Russia and the Commonwealth of Independent States with a strong presence in Central and Eastern Europe and a growing presence in the Middle East and Africa. SITRONICS serves over 3,500 clients, maintains offices in 30 countries and exports its products and services to more than 60 countries. SITRONICS has over 10,000 employees of whom approximately 4,600 are involved in research and development. SITRONICS’ key Telecommunication Solutions operations are based in Prague, Czech Republic and Athens, Greece, while the company’s IT Solutions and Microelectronic Solutions divisions are based in Kiev, Ukraine and Zelenograd, Russia respectively. For the three months ended March 31, 2007, SITRONICS’ revenues were US$ 310 million. As of 31 March 2007, SITRONICS had total assets of US$ 1.97 billion. SITRONICS is majority owned by Sistema, the largest diversified holding company in Russia and CIS. SITRONICS has developed strategic alliances in its home markets with Cisco Systems, STMicroelectronics, Infineon and Giesecke & Devrient in relation to certain products and services. SITRONICS has vendor relationships with Siemens, Ericsson, Motorola, ORACLE, Intel, Sun Microsystems and Microsoft. Key customers include Sistema group companies, such as MTS, Comstar UTS and MTT, and also OTE, Cosmote, Vodafone, Ericsson, Arcelor Mittal (formerly Mittal Steel) and TCL. 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 SITRONICS. 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. These statements are only predictions and actual events or results may differ materially. We do not intend to or undertake any obligation 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, and other factors specifically related to SITRONICS and its operations. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of SITRONICS, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of SITRONICS.