Moscow, Russia - 2 July, 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 its Board of Directors approved the election of the members of new Sistema's Management Board.

The Management Board comprises the following members who have been elected to the Board for a period of 3 years:

• 1. Leonid Melamed, President and Chief Executive Officer;
• 2. Anton Abugov, First Vice President, Head of Strategy and Development Group;
• 3. Ruslan Almakaev, Vice President, Head of Economic and Information Security Group;
• 4. Sergey Boyev, Vice President for Development of State Programmes and Non-Public Assets;
• 5. Alexey Buyanov, Senior Vice President, Head of Finance and Investment Group;
• 6. Anna Goldin, Vice President for Legal Issues and Head of Legal Group of Sistema;
• 7. Sergey Drozdov, Senior Vice President, Head of the Property Group;
• 8. Felix Evtushenkov, Chairman of the Board of Directors of Sistema-Hals;
• 9. Denis Muratov, Vice President, Head of Innovations and Science;
• 10. Vitaly Savelyev, First Vice President, Head of Telecommunications Asset Management Division;
• 11. Gennady Frolov, Head of Corporate Communications Department;
• 12. Sergey Cheremin, Vice President, Head of External Relations Complex

Leonid Melamed was appointed as Chairman of the Management Board.

Leonid Melamed, President and CEO of Sistema, commented: "The main goal of the elected Management Board branded "5*5>25" is to increase the Company's efficiency through increasing value of our public and non-public assets, simplifying the Group's corporate structure, maintaining a strict fiscal discipline based on our TSR and ROIC-driven philosophy, demonstrating leadership in the execution of our portfolio strategy and management of daughter companies, and becoming best in class in investor relations and corporate governance areas".