SISTEMA APPOINTS VITALY SAVELYEV AS FIRST VICE PRESIDENT AND HEAD OF TELECOMMUNICATIONS ASSET MANAGEMENT DIVISION

Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced the appointment of Vitaly Savelyev as First Vice President and Head of Sistema’s Telecommunications Asset Management division, with effect from November 1st, 2007. Mr. Savelyev is the former Deputy Economic Development and Trade Minister of the Russian Federation. Alexander Goncharuk, President and Chief Executive Officer of Sistema, commented: "We have large-scale ambitious goals set for our Telecommunications Asset Management division. Primarily, it has to increase its operating efficiency in this highly competitive environment, partly by implementing a number of convergent projects. In addition, it has to launch an in-depth programme of regional and international expansion. We are confident that Mr. Savelyev’s extensive financial management experience and thorough knowledge of the telecommunications market and new technology developments will assist in increasing the value of our assets and strengthening their position in the global telecommunications market.” Vitaly Savelyev was born on January 18, 1954. From 2004 until recently, Mr. Savelyev served as Deputy Economic Development and Trade Minister of the Russian Federation. From 2002 to 2004, he held the position of Adviser for Finance and Information Technology to the General Director of Svyazinvest. From September 2001, Mr. Savelyev served as Deputy Chairman of Gazprom, prior to which, he was Chairman of the Management Board of MENATEP. From 1993 to 1995, Mr. Savelyev was Chairman of the Management Board of Rossia Bank. From 1990 to 1993, he served as President of the USSR-US joint venture, Dialogue Invest. In 1989, Mr. Savelyev became co-founder and was elected to the Board of Directors of DialogueBank. In December 1988, he established and became the manager of the Leningrad branch of the USSR-US joint venture Dialogue, which was one of the pioneers of computer hardware and software dealerships in Russia. Vitaly Savelyev was appointed Assistant Manager of Glavleningradinzhstroy in 1987. Mr. Savelyev’s career started during the construction of the Sayano-Shushenskaya Hydroelectric Power Plant, where he held a number of positions, from engineer to master designer of the KrasnoyarskGesStroy group enterprise. Vitaly Savelyev graduated in Heavy Engineering and Mechanics from Leningrad Polytechnic Institute and completed a second degree at the Palmiro Togliatti Institute of Engineering and Economics in 1986. For further information, please visit www.sistema.com Sistema is the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector and has over 80 million customers. Sistema develops and manages market-leading businesses in selected service-based industries, including telecommunications, technology, banking, real estate, retail and media. Founded in 1993, the company reported revenues of US$ 5.9 billion for the first half of 2007, and total assets of US$ 22.5 billion as at June 30, 2007. Sistema’s shares are listed under the symbol "SSA” on the London Stock Exchange, under the symbol "AFKS” on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX), and under the symbol "SIST” on the Moscow Stock Exchange (MSE). Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect,” "believe,” "anticipate,” "estimate,” "intend,” "will,” "could,” "may” or "might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations. Information contained in this announcement does not constitute a public offer or an advertisement of securities in Russia, is not an offer, or an invitation to make offers, to purchase any securities in Russia. The reverse convertible certificates have not been and will not be registered in Russia and are not intended for "placement” or "public circulation” in Russia.