Moscow, Russia – July 15, 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 that it has acquired a 51% stake in OJSC M2M Telematics (“M2M Telematics”). Sistema plans to acquire a remaining 49% stake in the next two to five years in accordance with the agreement between the companies.

Founded in 2005, M2M Telematics is the leader in the Russian market of transport monitoring, navigation and telematics based on GLONASS/GPS technologies. The company has a broad portfolio of products for multiple market segments which it sells through an extensive distribution network comprising 56 regional partners, to a large customer base.

Sergey Boev, Vice President and Head of the 'High Technologies and Industry' Business unit at Sistema, commented: “This acquisition will provide Sistema with additional expertise and know-how to assist the federal network operator OJSC Navigation Information Systems (NIS) in implementing a public-private partnership project to create a national traffic accidents emergency response system under the ERA GLONASS brand.” 

OJSC NIS is owned by RTI Systems (25.5%), SITRONICS (25.5%) and Federal State Unitary Enterprise “Russian Institute of Space Device Engineering” (49%).