Moscow, Russia - January 23, 2006 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that its Board of Directors will consider changes to the Company's senior management  at its next Board meeting on February 25, 2006. These changes will include the appointment of Vladimir Evtushenkov as Chairman of the Board of Directors, and the appointment of Alexander Goncharuk as President and Chief Executive Officer.

Mr. Evtushenkov is Sistema's founder and largest shareholder, and served as Chairman of the Company's Board of Directors from January 1994 until January 2005. He was appointed as President of Sistema before the company's initial public offering and listing on the London Stock Exchange in February 2005.

Mr. Goncharuk is a shareholder in Sistema. He was President of Sistema Telecom from 1998 to 2003, and was subsequently appointed as General Director of Sistema's Technology business - Concern Scientific Center (now Concern Sitronics). Mr. Goncharuk has served as a member of Sistema's Board of Directors since 1995.

Commenting on the proposed changes, Vladimir Evtushenov said: "Sistema has made the successful transition from a private company to a public company in the last year, and the international investment community has placed substantial value on the potential of our businesses. We expect these new appointments to drive the further development of the Company and enable us to take our performance to the next level."

Evgeny Novitsky, who currently serves as Chairman of the Board of Directors, will continue to serve as a member of the Board.

The following additional changes have been made to Sistema's senior management: Mikhail Dunaev, CEO of Thema Production (a subsidiary of Sistema Mass Media), has been appointed as CEO of Sistema Mass Media; Alexander Leiviman, the former General Director of Sistema Mass Media, will continue to serve on Sistema's Board of Directors; Sergey Shchebetov, First Deputy CEO of Sistema Telecom, has been appointed as CEO of Sistema Telecom; and Vladimir Lagutin, the former CEO of Sistema Telecom, will continue to serve on the Sistema Board of Directors.