Moscow, Russia - 2 January 2008 - Sistema-Hals OJSC (LSE, MICEX, RTS: HALS), one of the largest diversified real estate companies in Russia and the CIS, has announced today its strategic partnership with Saraya, a real estate development and asset management company investing in travel and tourism, to invest in Kamelia Investment Company to develop a Saraya branded project at the Black Sea in Sochi.

Sistema-Hals sold Saraya a 50% stake in Kamelia Investment, a project company that owns the Kamelia Health Spa.

Further information about the project will be announced in due course.

Note to editors:

About Sistema-Hals

JSC 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 facilities and property 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. The company group FJSC Sistema holds a 71.1% stake and there is an 18% free float. Sistema-Hals is one of the largest companies by capitalization operating in Central and Eastern Europe real estate markets.

Since starting its operations in 1994, Sistema-Hals has successfully completed more than 30 projects with a total area of about 300,000 square metres, including the headquarters of DaimlerChrysler, the Hals Tower office building, the headquarters of Trubnaya Metallurgical Company 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 2,882 million as at 1 July 2007.

About Saraya

Saraya, established in 2005, is a Real Estate Development and Asset Management Company investing in the travel and tourism industry. Saraya's vision is manifested in turning untapped natural, rich and unique locations into luxurious destinations. Saraya seeks to support the economic growth of the countries it invests in by developing projects that maximize shareholders' value and contribute to local communities' sustainable development. Through its investment subsidiaries, Saraya has invested in Saraya Aqaba project, currently being developed in the Red Sea city of Aqaba, Jordan. While other projects - Saraya Islands in Ras Al Khaimah, United Arab Emirates; Saraya Dead Sea in the Dead Sea, Jordan; Saraya Bandar Jissah near Muscat in Oman; and Saraya Aktau on the Caspian Sea in Kazakhstan - are at various stages of development. Through strategic partnerships with public and private sectors, Saraya provides all facilities and services that a modern touristic city offers; including premium hotels, retail, entertainment, leisure and sport facilities, superb residential units while preserving the natural environment and local cultures. Saraya has introduced a bouquet of customized services to complement its world class destinations; granting all customers an unmatched and holistic experience. Saraya announced its first service, "Saraya Aviation", a Private Jet Charter Operation which is designed at servicing individuals as well as large corporations, banks and government officials in addition to visitors, tourists and businessmen. Saraya Aviation's fleet will grant short and long distance trips, taking off and landing from any destination in the world, and will commence operations in June 2008. In September 2007, Saraya announced its second elite service for its customers, "Saraya Realty", a fully owned subsidiary of Saraya. "Saraya Realty" will be the exclusive property selling, leasing and re-sales arm for all Saraya's luxurious destinations mainly targeting both end users and second-home owners through a variety of product packages tailored to meet their utmost satisfaction, hence offering customers and investors multiple options for investing their money in the most convenient manner while adding value to their investments. For more information on Saraya Holdings, please visit https://www.sarayaholdings.com/.