Moscow, Russia - 4 February 2008 - Sistema-Hals OJSC (LSE, MICEX: HALS), one of the leading diversified companies on the real estate market of Russian and the CIS, has announced the appointment of Andrey Solovyev as Company's Financial Director. Andrey Solovyev has also been appointed acting Vice President of Finance and Investment. Pavel Bondarchuk, the company's previous acting Vice President of Finance and Investment, will continue to serve as Chief Financial Controller.

Felix Evtushenkov, President of JSC Sistema-Hals, said: «Mr. Solovyev's experience in finance planning, budgeting and investments analysis will help to strengthen finance unit and raise the effectiveness of Company's projects realization».

Andrey Solovyev

Born in 1976.

Education: I.M. Gubkin State Oil and Gas Academy; Major: Economics

Certified Management Accountant by IMA

Work experience:

1998-2005 - Held various positions at oil and gas companies, including RITEK, Surgutneftegaz and YUKOS

2005-2006 - Head of Finance, Kachkanar Vanadium Mining Complex (EvrazHolding)

2006-2007 - Head of Finance, ESN Group

OJSC Sistema-Hals is a leading diversified company in the Russian and CIS real estate market. The core businesses of Sistema-Hals are development, project management and construction, and property and facilities management.

Sistema-Hals was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The company's shares are also listed on the Moscow Interbank Currency Exchange and the Moscow Stock Exchange. Parent company Sistema holds a 71.1% stake and there is an 18% free float. Sistema-Hals is one of the largest companies by capitalisation operating in the real estate markets of central and Eastern Europe.

Since starting operations in 1994, Sistema-Hals has successfully completed more than 30 projects with a total area in excess of 300,000 square metres, including the headquarters of DaimlerChrysler, the Hals Tower office building, the headquarters of Trubnaya Metallurgical Company (TMK) and a hotel for the MaMaison chain (Orco Property Group).

At present Sistema-Hals is constructing the Leningradsky Towers complex, which comprises two buildings, one of which will be the headquarters of Siemens in Moscow. It is also carrying out a complex redevelopment of the property portfolio of Moscow City Telephone Network, rebuilding the Hotel Peking and the flagship Children's World toy store near Lubyanka Square, and pursuing a series of other projects.

Sistema-Hals has assembled a balanced and diversified portfolio of assets in fast-growing sectors of the market. The company strategy is focused on building Class A and B office space, mixed-use retail and office complexes, business-class homes, residential estates and land development.

Cushman & Wakefield valued Sistema-Hals' share of the properties and projects in its portfolio at USD 2,882m as at 1 July 2007.