Moscow, Russia - 27 May, 2008 - 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 that it has signed an agreement on cooperation with CPMIEC, the Chinese National Precision Machinery Import & Export Corporation.

The agreement was signed by the Chairman of the Board of Directors at Sistema, Vladimir Yevtushenkov, and by the President of CPMIEC, Ji Yanshu. The agreement aims to develop cooperation on the Russian and Chinese markets, and also in third countries in the sphere of high-technology and developers' services.

The two parties agreed on the purchase of micro-electronic products by CPMIEC from the Sistema Group companies, the creation of a joint design centre to develop and produce micro-electronic chips for different uses, as well as a joint promotion of GLONASS/GPS products. Furthermore, CPMIEC will assist Sistema in the creation and operation of the Chinese Trading Centre in Moscow and the Moscow Trading Centre in China.