Moscow, Russia - June 8, 2007 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that it intends to purchase its own stock through a wholly owned subsidiary "Sistema Finance Investments" at a price of US$ 1,350 per share for a total cash consideration of  up to US$ 150 million.

As announced earlier, Sistema is establishing a share option programme for the top management of the company. The acquired shares are intended for the funding of this programme and may also be used in connection with certain future acquisition activity.

Sistema also purchased six months reverse convertible certificates for Mobile TeleSystems OJSC (MTS) ADRs, which were issued outside of Russia and are quoted on SWX Swiss Exchange, for a total cash consideration of US$ 50 million.  Upon their maturity, Sistema is entitled to a fixed rate coupon payment and will either receive back the principal amount or receive a fixed quantity of MTS' ADRs, depending on the price of MTS' ADRs at that time.