Moscow, Russia - 3 April 2008 - Sistema-Hals OJSC (LSE, MICEX, RTS: HALS), one of the largest diversified real estate companies in Russia and the CIS, has today announced the sale of project 22 Rochdelskaya in Moscow.

«The deal is part of our ongoing asset management strategy. Detailed analysis of our development pipeline indicates that it would be more cost effective to invest the funds received from the sale of the 22 Rochdelskaya project into other current projects." comments Sistema-Hals' Vice President Igor Kashcheev.

The land plot (0.29 hectares) allowed for the development with gross building area of about 13 000 sqm is situated in the center of Moscow close to the House of Government.

JSC Sistema-Hals is a leading diversified company in the Russian and CIS real estate market. Sistema-Hals' core businesses are development, project management and construction, and property and facilities management.

Sistema-Hals was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The company's shares are also listed on the Moscow Interbank Currency Exchange (MICEX) and the Moscow Stock Exchange (MSE). Its parent company, AFK Sistema, holds a 71.1% stake in the company and there is an 18% free float. Sistema-Hals is one of the largest companies by capitalisation operating in the real estate markets of Central and Eastern Europe.

Since starting operations in 1994, Sistema-Hals has successfully completed more than 30 projects with a total area in the region of 300,000 square metres, including the headquarters of DaimlerChrysler, the Hals Tower office building, the headquarters of Trubnaya Metallurgical Company and a hotel for the MaMaison chain (Orco Property Group).

At present Sistema-Hals is constructing the Leningradsky Towers complex, which comprises two buildings, one of which will be the headquarters of Siemens in Moscow. It is also carrying out a complex redevelopment of the property portfolio of the Moscow City Telephone Network, rebuilding the Peking Hotel undertaking the reconstruction of the flagship Detsky Mir toy store near Lubyanka Square, and pursuing a number of other projects.

Sistema-Hals has built a balanced and diversified portfolio of assets in fast-growing sectors of the market. The company's strategy is focused on building Class A and B office space, mixed-use retail and office complexes, business-class homes, residential estates and land development.

Cushman & Wakefield valued Sistema-Hals' share of properties and projects in its portfolio at USD 2,882m as at 1 July 2007.