Moscow, Russia - 3 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 Shyam Telelink Ltd. ("Shyam Telelink"), Sistema's telecommunications subsidiary in India, has selected  three vendors to supply equipment  for construction of CDMA 800 MHz mobile network in India. ZTE, Alcatel-Lucent and Huawei Technologies have been chosen as vendors in a closed tender. Each vendor will be allocated a certain geographical region in India for the deployment of equipment.

The Company considered a number of factors, such as experience in implementation of large-scale projects, technical expertise, local resources and cost parameters, in the evaluation of the tender participants. The contract includes equipment delivery (including base stations, main radio- and switching subsystems and other auxiliary equipment) and provision of services related to network design, installation, start-up and commissioning.

Mr. Raymond Armes, President of Shyam Telelink, commented: "We have chosen ZTE, Alcatel-Lucent and Huawei Technologies as our vendors based on the competitive advantages of their equipment and their capabilities to implement complex nation-wide projects."

Shyam Telelink now has spectrum in 19 telecommunications circles, covering 27 Indian states with a population of 1,066.5 million people (which comprise around 94.5% of Indian population).