Moscow, Russia - 28 April 2008 - Sistema-Hals (LSE, MICEX, RTS: HALS), a leading  company in the Russian and CIS real estate market, has today announced the result of an independent valuation of its share in properties and development projects as of 1 January 2008 carried out by Cushman & Wakefield Stiles & Riabokobylko (C&WS&R).

Felix Evtushenkov, President of Sistema-Hals, commented:

"In 2007 as part of our portfolio management strategy we devoted special attention to raising the quality of our investment projects, acquiring new projects in premium segments and efficiently implementing projects at the active development stage. The 30% rise in the value of our portfolio confirms the success of this strategy.

In 2008 we will focus our efforts on expanding the share of premium projects in our portfolio and boosting project size, with the intention of raising portfolio management efficiency and increasing future rental income. We believe that this strategy will ensure steady growth in shareholder value."

According to an independent analysis conducted by Cushman & Wakefield Stiles & Riabokobylko (C&WS&R), the value of Sistema-Hals' holding in properties and development projects rose by 30% during the period from 1 July 2007 to 1 January 2008.

C&WS&R determined that as at 1 January 2008 the total market value of 100% ownership of the 103 projects and properties amounted to USD 4,645.3 million. Of this, USD 3,745.9 million was attributable to Sistema-Hals after deducting minority interests. The previous appraisal by C&WS&R as at 1 July 2007 had valued 100% ownership of the properties and projects in the Sistema-Hals portfolio at USD 3,524.9 million, with the share attributable directly to Sistema-Hals being worth USD 2,882.1 million.

The growth in the value of the company's share in properties and development projects is largely the result of acquisitions of new projects, progress in execution of ongoing projects and an increase in the GBA of development projects and properties in the premium segments.

The above appraisal represents the aggregate current value of various properties and projects in the real estate business and cannot be taken as a valuation of the project portfolio if it were to be sold as a whole.