Press-releases

Moscow, Russia – February 3, 2011 – Sistema (the “Group”) (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 appointment of Igor Varlamov as General Director of CJSC Binnopharm, a subsidiary of Sistema. Mr. Varlamov previously held the position of General Director of Alliance Healthcare Russia, one of the largest pharmacy chains in Russia.

Sergey Boyev, Vice President and Head of the High Technologies and Industry business unit of Sistema, commented: “Binnofarm has reached a new stage in its development, focused on improving its operational performance, growing the distribution network and successfully participating in state tenders for pharmaceuticals. Igor Varlamov brings a wealth of experience in developing pharmaceutical companies. He will be instrumental in helping us achieve our goals and deliver on Binnofarm’s growth strategy while raising the company’s investment profile. We are grateful to Maxim Uvarov for his leadership of Binnofarm through the period of unprecedented growth and look forward to working with him in the future.”

Igor V. Varlamov was born in 1965 in Viborg, Leningrad region. Between 2001 and 2010, Mr. Varlamov held a number of positions in Alliance Healthcare Russia (CJSC Apteka Holding), including General Director from 2007, Executive Director and Deputy Director of Distribution. Prior to that, between 1994 and 2001, he served as Deputy CEO of JSC Chiton. In 1987, Mr. Varlamov graduated from the Higher Military Engineering School named after A.N. Komarovsky (now Military Engineering-Technical University).

Binnopharm, a wholly-owned subsidiary of Sistema, is one of Russia’s largest pharmaceutical producers which operates the largest Good Manufacturing Practice (GPM) compliant bio-pharmaceutical plant in Russia, spanning more than 32,000 square meters. Binnopharm has in-house R&D department and advanced facilities where it manufactures tablets, capsules, ampoules, aerosols and sprays.

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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$ 7.3 billion for the third quarter of 2010, and total assets of US$ 42.0 billion as at September 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.

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