Moscow, Russia – April 28, 2011 – JSFC Sistema (“Sistema” or the “Group”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announced its unaudited consolidated US GAAP financial results for the fourth quarter and audited financial results for the full year ended December 31, 2010.

Fourth quarter highlights

Revenues up 19.5% YoY to US$ 7.7 billion

OIBDA increased by 22.2% YoY to US$ 1.9 billion, with an OIBDA margin of 25.0%

Net income attributable to the Group more than doubled YoY to US$ 447.3 million

Net debt at the Corporate Holding level declined QoQ to US$ 684.5 million from US$ 1.9 billion

The Oil & Energy business unit contributed US$ 3.6 billion (47.4%) and US$ 1.02 billion (53.3%) to the Group’s consolidated revenues and OIBDA, respectively

Full year highlights

Revenues up 49.9% YoY to US$ 28.1 billion

OIBDA increased by 8.6% YoY to US$ 7.3 billion, with an OIBDA margin of 26.0%

Net income attributable to the Group decreased by 44.1% YoY to US$ 918.7 million

Key corporate highlights for 2010

Signed a Framework Agreement with the Indian national oil and energy holding company ONGC Videsh to consider opportunities for a potential transaction involving Sistema’s and ONGC’s oil & gas assets  

Sold remaining 27.6% stake in Sistema-Hals for a total cash consideration of US$ 70 million 

Sold a 25%+1 share stake in OJSC Detsky Mir-Center to Sberbank through an additional share issue for a total consideration of RUB 3.4 billion (approximately US$ 113 million).  

Agreed to establish a joint venture between Intourist and Thomas Cook and sell 51% stake in the new entity to Thomas Cook for a total consideration of US$ 45 million. 

Signed an agreement with the Russian Federation regarding an investment in Shyam TeleServices for a total consideration of US$ 600 million – completed in March 2011  

Completed reorganisation of telecom assets in accordance with the agreements between the Group and Svyazinvest, including a share swap in Skylink and MGTS. 

Acquired a 49% stake in OJSC RussNeft.

Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented: 

“2010 was a strong year for Sistema which regained its pre-crisis financial strength and completed a number of milestone transactions.

Our Core businesses, MTS and Bashneft have delivered strong financial results substantially increasing Sistema’s revenues and improving our OIBDA. Our Developing assets have also staged a strong recovery, particularly the Consumer Business Unit which despite a difficult start to 2010 delivered a complete turnaround in profitability.

Last year was the most active in Sistema’s history in managing its investments and transforming its portfolio. We have completed a record number of deals, adding further scale and synergies to mature businesses while attracting partners or making exits in other sectors.

With the reorganization of our assets now mostly complete, subsequent to year end Sistema too took a step to align its internal structures as the final stage in its transformation to an investment company. Over the last several years we have shown we can deliver transformational deals to shareholders and our increased focus on active investment management signifies our confidence in this management team and growth opportunities in our market.”

Conference call information

Sistema management will host an analyst 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 fourth quarter and full year 2010 results.

The dial-in numbers for the conference call are:

UK/ International: +44 20 7190 1595

US:  +1 480 629 9835

A replay of the conference call will be available on the Company’s website www.sistema.com

for 7 days after the event.

For further information, please visit www.sistema.com or contact:

Investor Relations                                                                       Public Relations

Evgeniy Chuikov                                                                        Vsevolod Sementsov
Tel: +7 (495) 692 11 00                                                              Tel.:+7 (495) 730 1705

ir@sistema.ru                                                                             pr@sistema.ru