Sistema Announces Results of Its Annual Shareholder Meeting

Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced the decisions made at the Annual General Meeting of its shareholders ("AGM”) on June 28, 2008. The AGM approved the election of two new members to the Board of Directors, including an independent non-executive director, a prominent economist, Lord Robert Skidelsky. The Board of Directors, therefore, comprises 4 independent non-executive directors and consists of 10 members. The shareholders approved the election of the members of the Board of Directors as follows: Vladimir Evtushenkov – Chairman Alexander Goncharuk – Non-executive Director Vyacheslav Kopiev – Non-executive Director Dmitry Zubov – Non-executive Director Evgeny Novitsky – Non-executive Director Sergey Cheremin – Vice President, Head of External Relations Alexander Gorbatovsky – Non-executive and Independent Director Ron Sommer – Non-executive and Independent Director Stephan Newhouse – Non-executive and Independent Director Robert Skidelsky – Non-executive and Independent Director At the statutory Board meeting following the AGM, the Sistema Board of Directors appointed Vladimir Evtushenkov as Chairman. The AGM also approved an annual dividend of RUR 0.25 per ordinary share, or approximately US$ 0.211 per Global Depositary Receipt ("GDR”), for the twelve months ended December 31, 2007, to be paid to holders of Sistema’s shares as at the record date of May 17, 2008. The dividend payment amounts to over RUR 2.4 billion or approximately US$ 102 million. Audit-Garantia-M was appointed as Sistema’s Russian Accounting Standards auditor for 2008, and Deloitte & Touche Regional Consulting Services Limited was appointed as Sistema’s US GAAP auditor for 2008. In addition, the AGM approved the election of the members of the Audit Committee and approved new versions of Regulations on the Board of Directors and the Executive Board. Robert Jacob Alexander Skidelsky, Baron Skidelsky of Tilton, was born on April 25, 1939 in Kharbin in the family of the Russian emigrants. Robert Skidelsky graduated from Brighton College and Oxford University. From 1970 to 1976, he was an Associate Professor of History at Johns Hopkins University. Robert Skidelsky is a prominent British economist. He is a member of the House of Lords (since 1991), a Fellow of the British Academy (since 1994), and a Professor of Political Economy at the University of Warwick (since 1990). Robert Skidelsky is also a General Adviser to the Russian Association for the Protection of Investor Rights. Robert Skidelsky is a contributor to a number of well-known publications, such as New Statesman, Prospect and New York Review of Books. Robert Skidelsky is also an author of a three-volume biography of John Maynard Keynes (1983-2000) and the bestseller "The World After Communism” (1995). For further information, please visit www.sistema.com 1 Based on the Russian Central Bank exchange rate as at June 27, 2008 Sistema is the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector and has over 100 million customers. Sistema develops and manages market-leading businesses in selected service-based industries, including telecommunications, technology, banking, real estate, retail, media, tourism and healthcare. Founded in 1993, the company reported unaudited revenues of US$ 3.8 billion for the first quarter of 2008, and total assets of US$ 30.3 billion as at March 31, 2008. 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 "AFKC” on the Moscow Interbank Currency Exchange (MICEX), and under the symbol "SIST” 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. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. 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.