SSA.L Regulatory News (SSA)

Information on a transaction under the MTS share buyback programme

Moscow, 10 January 2018 - Sistema PJSFC (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that its subsidiary Sistema Finance S.A. sold 9,573,376 ordinary shares of PJSC MTS (hereinafter, "MTS") to a subsidiary of MTS, LLC Stream Digital ("the Purchaser"), as part of the MTS share buyback programme ("the Programme"), which was approved by the Board of Directors of MTS in April 2016 and will be effective until April 2019. The amount of the transaction was approximately RUB 2,526.5 million.

In accordance with the terms of the Programme, the number of shares for the purpose of the transaction was calculated based on the number of ordinary shares and American depositary shares of MTS purchased by the Purchaser in the open market in December 2017 in proportion to Sistema Group's effective equity stake in MTS.

As a result of implementation of the Programme in December 2017, Sistema Group's effective stake in MTS remained unchanged at 50.004%.

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

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This announcement contains inside information. Full name and position of person making the announcement - Yury Krebs, Director, Investor Relations

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Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Its revenue in 2016 reached RUB 697.7 billion; its total assets equalled RUB 1.1 trillion as of 31 December 2016. Sistema's global depositary receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.ru