Moscow, Russia - 7 April, 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 obtained radio frequencies for building mobile networks in a number of Indian circles.

The Department of Telecommunications of India allocated the 800 MHz radio frequencies to Sistema's subsidiary, Shyam Telelink, in three Indian circles, North-East, Jammu and Kashmir, and Assam. As a result, Sistema will be able to start building the first stage of its full scale CDMA-based mobile network in these Indian regions with a target population of approximately 110 million people.

On January 10, 2008, Shyam Telelink was awarded with guarantee letters for provision of unified telecommunication licenses to provide fixed-line and cellular services in 21 Indian circles. These licenses will allow Shyam Telelink to build mobile networks and provide fixed-line and mobile services. The company now holds licenses, including those already held in Rajasthan, to provide pan-Indian telecommunication services.