Moscow, Russia and Athens, Greece - June, 22, 2006 - Following their joint announcement of February, 13, 2006, Sistema (LSE: SSA) and Intracom Holdings Sa (ASE: INTRK), Concern Sitronics, the technology arm of Sistema and Intracom Holdings announce that today they have reached a final agreement for the acquisition by Concern Sitronics of a 51% stake in Intracom Telecom for EUR 120 million. The stocks transfer is expected to take place by June 30, 2006.

Intracom Telecom is a fully owned subsidiary of Intracom Holdings providing complete telecommunications solutions and services in the EEMEA (Eastern Europe, Middle East and Africa) region. Intracom Telecom, through its R&D activity, has developed and manufactured a full portfolio of advanced technological products in the areas of broadband fixed and wireless access and transmission systems, as well as content delivery systems (IPTV, triple-play).

Concern Sitronics will integrate the company into its Telecom Solutions Division, whose primary focus is currently on switching equipment, billing systems and NGN, aiming to achieve  full scale synergies from Intracom Telecom's complementary product lines, system integration capabilities and customer base.