Moscow, Russia – July 18, 2011 – JSFC Sistema (“Sistema”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that the subscriber base of Sistema Shyam TeleServices Limited (SSTL), Sistema’s subsidiary in India which provides telecommunications services under the MTS brand, has over 12 million users.

At the same time, the number of mobile broadband internet subscribers has reached 800 thousand in more than 150 of the largest cities in India.

According to a report of the Telecom Regulatory Authority of India (TRAI) as of June 2011, the penetration of broadband technologies in India did not exceed 1%. The National Broadband Plan suggests that the number of broadband connections in India will increase to 160 million by 2014, including 60 million wireless mobile broadband connections. SSTL is constantly growing its subscriber base for mobile high-speed data services, which are today available to 92% of potential users.