Moscow, Russia - 14 August, 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 fully consolidated its ownership of Dalcombank, a commercial bank based in the Far East of Russia. Sistema increased its stake from 98.65% to 100% for a total cash consideration of approximately US$ 2.9 million.

In August 2007, Sistema acquired 20% stake in Dalcombank. Sistema increased its holding to 48.16% in October 2007. In January 2008, Sistema raised its stake to 98.65% through a public offer to existing shareholders of the bank.

The acquisition of shares in Dalcombank is in line with the development of Sistema's banking group, which presently comprises Moscow Bank for Reconstruction and Development (MBRD) and East-West United Bank (Luxembourg). Dalcombank is a leading bank in the Far East region of Russia with a wide retail network, including the largest cities: Birobidzhan, Blagoveshchensk, Vladivostok, Irkutsk, Komsomolsk-on-Amur, Khabarovsk, Yakutsk and other.