Moscow, Russia - September 20, 2007 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that, following the Extraordinary General Meeting ("EGM") of its Shareholders, which was held on September 17, 2007, the proposed split of the nominal value of the Company's ordinary shares by 1,000 times was approved by a majority of 99.98% of the votes cast.

As a result of the share split, the Company's share capital of RUB 868,500,000 will now comprise 9,650,000,000 ordinary shares with a par value of RUB 0.09 per share. In addition, the relevant amendments will be made to Sistema's Charter to reflect the changes in the Company's share capital.