Moscow, Russia - 13 May, 2008 - Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced that it has signed a Memorandum of Understanding with DAS Holding LLC, an international investment holding company with headquarters in Abu Dhabi.

Under the patronage of His Highness Sheikh Mansour Bin Zayed Al Nahyan a Memorandum of Understanding was signed by Vladimir Evtushenkov, Chairman of the Board of Directors of Sistema, and Khalid Deemas Al Suwaidi, Chief Executive Officer of DAS Holding LLC, in Abu Dhabi. The main goal of the Memorandum is to develop the cooperation in various sectors of the economy, such as investments into real estate and construction projects, banking, medicine, tourism and the hotel business in Russia, the CIS and United Arab Emirates.

In addition, Sistema and DAS Holding LLC intend to develop cooperation in a number of areas, such as

• Joint participation and investment into telecommunications projects, as well as project management;
• Prospective mutually beneficial investments in oil and gas projects;
• Involvement of investment funds in financing joint venture projects aimed at developing new technologies;
• Creation of crisis management centres;
• Creation of the information centre for geological resources aimed at providing the data to the potential investors.