Moscow, Russia - March 28, 2006 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, announced today that it had completed the previously announced acquisition of 44'564 Sistema common shares, which is equivalent to 0.46% of the total shares outstanding, for a total cash consideration of $50.892 mln. The acquisition was executed through Sistema Finance - a fully owned subsidiary of Sistema.

As previously announced, Sistema is considering establishing a share option programme for the senior management of the company, and intends to use the acquired shares for such a programme as and when established.