Moscow, Russia – July 16, 2010 – Sistema (the “Company”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder in companies operating in different industries, today announced changes and new allocations to the Sistema Board of Directors’ shareholdings in the Company.

In line with the remuneration structure for the members of Sistema Board of Directors, shareholdings in the Company of seven members have been increased by 89,139 shares, and three Directors have been awarded their first allocation of shares with two being granted 93,237 shares each and one receiving 89,139 shares. Each allocation represents approximately 0.0009% of 9,650,000,000 total shares outstanding. Based on the closing GDR price on the London Stock Exchange as of July 15, 2010 of US$ 23.86 per GDR, this equates to an indicative value of US$ 1.1 million.

- Chairman of the Board Vladimir Evtushenkov’s shareholding in the Company has increased from 64.1812 % to 64.1821 %

- Independent Director Evgeny Novitsky’s shareholding in the Company has increased from 1.9929 % to 1.9938%

- Director Alexander Goncharuk’s shareholding in the Company has increased from 1.8891% to 1.8900 %

- Deputy Chairman of the Board Dmitry Zubov’s shareholding in the Company has increased from 0.8788% to 0.8797%

- Director Vyacheslav Kopiev’s shareholding in the Company has increased from 0.0531% to 0.0540%

- Director Dr. Ron Sommer’s shareholding in the Company has increased from 0.0033% to 0.0042%

- Deputy Chairman of the Board Sergey Cheremin’s shareholding in the Company has increased from 0.0017% to 0.0026%

- Director, President and CEO Leonid Melamed, who previously did not hold any shares, was awarded 0.0009 % of the outstanding share capital

- Director Rajiv Mehrotra, who previously did not hold any shares, was awarded 0.0009 % of the outstanding share capital

- Independent Director Robert Kocharyan, who previously did not hold any shares, was awarded 0.0009 % of the outstanding share capital.