Moscow, Russia – May 17, 2011 – JSFC Sistema (“Sistema” or the “Group”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that following a Board of Directors (“Board”) meeting, the Board recommends that the upcoming Annual General Meeting of Shareholders (“AGM”) of Sistema, to be held on June 25, 2011, approves the payment of a 2010 dividend of RUB 0.26 (approximately US$ 0.009) per ordinary share, which amounts to RUB 2,509 million (approximately US$ 89.8 million) in total.

The dividend is due to be paid within a 60-day period following the AGM’s approval of the dividend payment. Dividend payments to shareholders are settled by bank transfer into accounts, the details of which are provided by shareholders.