SSA.L Regulatory News (SSA)

17 Oct 2006 08:49

The issuer advises that the following replaces the announcement released todayby Sistema - October 17, 2006 at 07:00am BST. In the third paragraph, the number of days of the lock-up period should be 30instead of 90. All other details remain unchanged. The full corrected text appears below. Sistema Announces Sale of Company Stock by Minority Holders Sistema (LSE: SSA), the largest private sector consumer services company inRussia and the CIS, announced today that a number of certain minorityshareholders of the company have entered into an agreement with Credit Suissefor the sale of their shares of Sistema, constituting approximately 1.9% of thetotal number of shares outstanding. Selling shareholders include certaindirectors and officers of Sistema. Sistema, through one of its subsidiaries, subscribed to a total of 167,131ordinary shares at the offer price, which constitute 1.73% of the offered stock.The total subscription was in the amount of approximately US$ 207 million.Sistema plans to establish a share option programme for the top management ofthe company. The acquired shares are intended for the funding of this programmeand may also be used in connection with certain future acquisition activity. The selling shareholders have agreed to a 30-day lock-up period with respect totheir remaining holdings. For further information, please visit www.sistema.com or contact: \* TSistema Investor Relations Shared Value LimitedVictor Kurilo Matthew HooperTel: +7 495 629 2741 Tel. +44 (0) 20 7321 5023ir@sistema.ru sistema@sharedvalue.net\* T Sistema is the largest private sector consumer services company in Russia andthe CIS, with over 65 million customers. Sistema develops and managesmarket-leading businesses in selected service-based industries, includingtelecommunications, technology, insurance, banking, real estate, retail andmedia. Founded in 1993, the company reported revenues of US$4.6 billion for thefirst half of year 2006, and total assets of US$ 17.3 billion as at June 30,2006. Sistema's shares are listed under the symbol "SSA" on the London StockExchange, under the symbol "AFKS" on the Russian Trading System (RTS), and underthe symbol "SIST" on the Moscow Stock Exchange (MSE). Some of the information in this press release may contain projections or otherforward-looking statements regarding future events or the future financialperformance of Sistema. You can identify forward looking statements by termssuch as "expect," "believe," "anticipate," "estimate," "intend," "will,""could," "may" or "might" the negative of such terms or other similarexpressions. We wish to caution you that these statements are only predictionsand that actual events or results may differ materially. We do not intend toupdate these statements to reflect events and circumstances occurring after thedate hereof or to reflect the occurrence of unanticipated events. Many factorscould cause the actual results to differ materially from those contained in ourprojections or forward-looking statements, including, among others, generaleconomic conditions, our competitive environment, risks associated withoperating in Russia, rapid technological and market change in our industries, aswell as many other risks specifically related to Sistema and its operations. Copyright Business Wire 2006