Statement re Sistema announces intention to acquire up to 51% of JSC NIS

12 Oct 2010 08:15

SISTEMA ANNOUNCES INTENTIONTO ACQUIRE UP TO 51% OF JSC NIS

Moscow, Russia - October 12, 2010 - Sistema JSFC (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 the intention to acquire up to 51% of JSC NIS - 25.5% from the Concern RTI Systems and 25.5% from JSC SITRONICS, with the Russian government retaining its 49% stake. As approved by Sistema's Board of Directors, the consideration of the transaction may total up to RUB 484 million. Although completion of the transaction is expected in the fourth quarter of 2010, it remains subject to the execution of binding documentation and the satisfaction of all conditions precedent, including receipt of the approval of the Russian Federal Antimonopoly Service.

JSC NIS is the federal operator of satellite navigation services responsible for commercialization of the GLONASS system. This transaction is in pursuance of Sistema's policy to invest in GLONASS-related projects and in line with Sistema's strategy to participate in promising private-public partnerships.

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

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$ 6.9 billion for the second quarter of 2010, and total assets of US$ 40.2 billion as at June 30, 2010. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's 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.

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