THE RUSSIAN GOVERNMENT APPROVES EQUITY INVESTMENT IN SISTEMA SHYAM
TELESERVICES Ltd.
Moscow, Russia September 8, 2010 Sistema (LSE: SSA), the
largest diversified public financial corporation in Russia and the CIS,
which invests in and is a major shareholder of companies operating in
different industries, today announced that the Government of the Russian
Federation has approved an equity investment in Sistema Shyam
TeleServices Ltd. (SSTL), Sistemas subsidiary in India, which provides
telecommunications services under the MTS brand.
It is expected that the Russian Government, represented by the Federal
Agency for State Property Management (Rosimushchestvo), will participate
in an issuance of additional shares of SSTL, paying an equivalent of US$
600 million in the form of Indian rupees held in accounts representing
Indian governmental debt to the Russian Federation.
The issuance of shares to the Russian Government is subject to the
receipt of necessary regulatory and corporate approvals, including the
approval by the General Meeting of shareholders of SSTL, and the signing
of binding agreements.
SSTL plans to use the funds to be received from the share issuance to
finance continued development of the companys activities, in
particular: the reinforcement of its leading position in the area of
wireless broadband internet coverage (under the EV-DO Rev. A standard),
the expansion of its branded retail network in its current
telecommunication circles, and the accelerated launch of operations in a
number of new circles.
Sistema Shyam TeleServices Ltd. (previously Shyam Telelink Ltd.),
established in 1998, launched its full operations in the State of
Rajasthan in 2000. The company received the pan-Indian licence for
mobile network operations in March 2008, and presently owns right to use
frequencies for provision of mobile telephony services in 22 circles
across the country. The company provides telecommunication services
to more than 6 million subscribers in 12 circles: Rajasthan, Tamil Nadu
(and Chennai), Kerala, Kolkata, West Bengal and Sikkim, Bihar (and
Jharkhand), Delhi, Karnataka, Mumbai, Haryana, Maharashtra and Andhra
Pradesh. SSTL is a joint venture between Sistema and Shyam Group of
India with a 73.71% stake owned by Sistema.
***
For further information, please visit www.sistema.com
or contact:
Investor Relations

Public Relations
Ekaterina Tsukanova
Vsevolod Sementsov
Tel: +7 (495) 228 1536
Tel: +7 (495) 730 1705
ir@sistema.ru
pr@sistema.ru
Sistema is the largest diversified public financial corporation in
Russia and the CIS, which invests in and is a major shareholder of
companies serving over 100 million customers in the sectors of
telecommunications, high technology, oil and energy, radars and
aerospace, banking, retail, mass-media, tourism and healthcare services.
Founded in 1993, the company reported revenues of US$ 6.2 billion for
the first quarter of 2010, and total assets of US$ 42.6 billion as at
March 31, 2010. Sistemas global depository receipts are listed under
the symbol SSA on the London Stock Exchange. Sistemas ordinary shares
are listed under the symbol AFKS on the RTS Stock Exchange, under the
symbol AFKC on the MICEX Stock Exchange, 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. In addition, there is no assurance that the new
contracts entered into by our subsidiaries referenced above will be
completed on the terms contained therein or at all. 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.
This document does not constitute or form part of any offer or
invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for, any shares or other securities of JSFC
Sistema and/or any of its subsidiaries and affiliated companies, nor
shall any part of it nor the fact of its distribution form part of or be
relied on in connection with any contract or investment decision
relating thereto, nor does it constitute a recommendation regarding the
shares or securities of JSFC Sistema and/or any of its subsidiaries and
affiliated companies.

Source: Business Wire