Moscow, Russia - February 22, 2006 - Concern SITRONICS, the technology business subsidiary of Sistema (LSE: SSA), today announced the pricing of its debut Eurobond transaction. The 3-year US$ 200 million issue was priced at 99.672% with an annual coupon of 7.875%. The notes are being offered and sold outside the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act.

The loan notes are being issued through Concern SITRONICS' 100% beneficially owned subsidiary, Sitronics Finance S.A., which is a Luxembourg registered company, and are guaranteed by Concern SITRONICS.

The issue was lead managed by ABN AMRO and Credit Suisse. Application has been made to list the loan notes on the London Stock Exchange.

Concern SITRONICS intends to use the proceeds of the offering for general corporate purposes, including capital expenditure and the refinancing of certain short-term debt.