Moscow, Russia - July 15, 2014 - Sistema JSFC ("Sistema", the "Group" or the "Company") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that Standard & Poor's Ratings Services ("S&P") has upgraded Sistema's corporate credit rating to 'BB+' from 'BB' with stable outlook. 

In its report, S&P highlighted that Sistema's financial risk profile has strengthened, with solid dividend inflows from key subsidiaries and relatively low debt on its own balance sheet. S&P also noted improvements in the Company's management and governance practices. 

Vsevolod Rozanov, Senior Vice President, Chief Financial Officer of Sistema, commented: "S&P's rating upgrade reflects improvements in Sistema's financial and investment profiles. The rating increasing by one notch to 'BB+' brings us one step closer to investment grade, and wewill continue working hard on strengthening our corporate governance and developing our business further to help us achieve this status." 

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For further information, please visit www.sistema.com or contact:

Investor Relations Evgeniy Chuikov Tel.: +7 (495) 692 1100 ir@sistema.ru

Public Relations Ekaterina Tsukanova Tel.: +7 (495) 228 15 36 tsukanova@sistema.ru