Moscow, Russia - July 26, 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 the Board of Directors of Shyam Telelink, a subsidiary of Sistema in India, appointed Mr. Vsevolod Rozanov, who held the position of Vice President and CFO at MTS from April 2006, as President and CEO of Shyam Telelink.

Leonid Melamed, President and Chief Executive Officer of Sistema, commented: "Vsevolod is a successful professional who made a significant contribution to consolidating MTS's position in the market. We are confident that his appointment as President and CEO of Shyam Telelink will strengthen the management team of our promising Indian asset, which is intended to further establish Sistema's position in the global telecommunications market. At the same time, a strong team of professionals at MTS will continue to build up the momentum in the leading Russian telecom operator."

Vsevolod Rozanov noted: "I am honoured to head Shyam Telelink, one of Sistema's major projects. I plan to apply the experience and knowledge gained at MTS to achieve the goals set by the shareholders to establish a pan-Indian mobile operator, one of the key players in the Indian telecommunications market."

Vsevolod Rozanov was born on July 30, 1971 in Moscow. Mr. Rozanov served as Vice President and CFO at MTS from April 24, 2006. From 2004 to 2006, Mr. Rozanov served as Deputy General Director for Economics and Finance at Comstar - United TeleSystems OJSC, where he coordinated the preparation for Comstar UTS' IPO. From 2002 to 2004, he worked as Deputy General Director for Economics and Finance at MTU-Inform. Prior to that, from 1993 to 2001, he held various consulting positions at Bain&Company, Inc. in Moscow, London and Stockholm. Vsevolod Rozanov is a graduate of the Lomonosov Moscow State University with a degree in Economics.