Moscow, Russia – March 4, 2011 – Sistema JSFC (the “Company”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in, and is a major shareholder of, companies operating in different industries, today announced that its Board of Directors will consider changes to the management structure of the Company at tomorrow’s Board meeting. These changes to the management structure are related to the implementation of the new development strategy of the Company, which was approved by the Board of Directors in October 2010. The new strategy provides for the transition of the Company from an operational holding company to an investment company.

A number of initiatives have been implemented in line with the new strategy, including changes to the incentive programmes at Sistema and its subsidiaries, and a revised approach to, and procedures for, making investment decisions. The Company has also completed several previously announced transactions that optimise and enhance the development of Sistema’s asset portfolio. Following these changes in early February 2011, Sistema’s Board of Directors has decided to adopt a new organisational structure for the Company.

In line with the new organisational structure, tomorrow’s Board of Directors’ meeting will consider changes to the composition of the Company’s top management. Mikhail Shamolin, until today the President and CEO of Mobile Telesystems (MTS), will be considered for the position of President and CEO of Sistema. Mr. Shamolin worked at Interpipe and McKinsey & Co. prior to his position at MTS. It is intended that Leonid Melamed, the current President and CEO of Sistema, will continue to actively participate in Sistema’s transformation as a member of Sistema’s Board of Directors and Chairman of Russneft.

Sistema will announce the results of the Board of Directors’ consideration of the proposed changes following tomorrow’s Board meeting.