Moscow, Russia – December 21, 2010 – Sistema (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 has approved a RUB 19.5 billion issue of five-year unconvertible interest-bearing series 04 bonds. The decision was taken at a meeting of the Board of Directors, held on December 18, 2010.

The proceeds of the placement will be used to refinance Sistema’s existing debt facilities.

The bond issue will not alter Sistema’s current total debt position.