Moscow, Russia – January 26, 2009 – Sistema (LSE: SSA), the largest diversified public corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer services sectors and technology industries, today announced that Shyam Telelink Ltd., a subsidiary of Sistema, was renamed Sistema Shyam TeleServices Ltd. (“Sistema Shyam TeleServices” or “Shyam”), following the decision made at the EGM of Shareholders of Shyam.

Vsevolod Rozanov, President and Chief Executive Officer of Sistema Shyam TeleServices, commented: “Renaming of Shyam Telelink is a logical step in the development of our Indian operator. As previously announced, Shyam will be offering its services under the MTS brand from February 2009. Furthermore, Sitronics has supplied radio relay equipment to Shyam in the state of Rajasthan. These efforts clearly position Sistema Shyam TeleServices as an integral part of the Sistema Group, which is now reflected in its name.”

Vitaly Savelyev, First Vice President of Sistema, Head of “Telecommunications Assets” operating unit, Chairman of Sistema Shyam TeleServices, commented: “We intend to further develop Sistema Shyam TeleServices and to launch its mobile network in two additional Indian circles in the near future.”

Shyam opened its new head office in Gurgaon, a satellite city near Delhi, with 120 staff. Sistema Shyam TeleServices now has spectrum in 22 Indian circles, covering 28 administrative states and 7 union territories with a population of approximately 1.1 billion people. Sistema Shyam TeleServices launched a CDMA 800 MHz mobile network in the state of Rajasthan at the end of September 2008. The Sistema Shyam TeleServices’ subscriber base has exceeded 500,000 users, including nearly 300,000 mobile subscribers, as at January 26, 2009.