Moscow, Russia – 16 June, 2010 – Sistema (the “Group”) (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 its unaudited consolidated US GAAP financial results for the first quarter ended March 31, 2010.

First quarter financial highlights

- Consolidated revenues more than doubled year-on-year to US$ 6.2 billion

- Consolidated OIBDA nearly doubled year-on-year to US$ 1.7 billion, with an OIBDA margin of 26.8%

- Operating income more than doubled year-on-year to US$ 956.1 million, with an operating margin of 15.4%

- Consolidated net income attributable to the Group of US$ 163.5 million, compared to US$ 395.5 million net loss in the first quarter of 2009

- The Oil & Energy business unit contributed US$ 2.9 billion and US$ 0.6 billion to the Group’s consolidated revenues and OIBDA, respectively

Leonid Melamed, President and Chief Executive Officer of Sistema, commented: “We are pleased with the results achieved in the first quarter of 2010 which demonstrate positive developments: the increase in all key consolidated financial indicators, significant growth in the performance of the Oil and Energy business unit, continued improvements in the Consumer business unit and High Technology business. Sistema benefits from a number of competitive advantages which allow it to not only successfully overcome the crisis period but continue to develop competitively. We utilise our know-how when making investment decisions and developing new investment goals, we have achieved an investment track record and we own a unique portfolio of assets, and we possess a unique set of skills to efficiently manage our businesses. We aim to continue utilising our strengths and we believe in their potential in order to make sound investment, financial and portfolio decisions which are focused on profitable growth and high ROIC.”

Conference call information

Sistema management will host a conference call today at 9 am (New York time) / 2 pm (London time) / 3 pm (CET) / 5 pm (Moscow Time) to present and discuss the first quarter results.

The dial-in numbers for the conference call are:

UK/International: +  44 20 7190 1595

US: + 1 480 629 9725

A replay of the conference call will be available on the Company’s website www.sistema.com for 7 days after the event.