SSA: JSFC Sistema: Sistema Announces Proposed Acquisition of Argos Group Holding B.V.

  SSA: JSFC Sistema: Sistema Announces Proposed Acquisition of Argos Group
  Holding B.V.

UK Regulatory Announcement

MOSCOW

Sistema JSFC (“Sistema” or the “Company”) (LSE: SSA), the largest
publicly-traded diversified holding company in Russia and the CIS, today
announces that it has signed a non-binding term sheet regarding the
acquisition of 100% of the issued and outstanding shares in the share capital
of Argos Group Holding B.V. (“Argos” and together with its subsidiaries and
participations, the “Argos Group”), the largest independent group in the
Western European downstream oil market, combining storage and distribution
with the international trade in and sale of mineral oils and biofuels.

The contemplated transaction is subject to (i) completion of due diligence and
the execution of legally binding transaction documents, (ii) corporate
approval by Sistema, and (iii) clearance from the European Commission pursuant
to Council Regulation (EC) No. 139/2004 as well as the possible clearance from
competition authorities in other countries in which Sistema is active.

Sistema and Argos envisage working closely together to prepare the
notifications to the relevant competition authorities for the merger control
clearances required for the contemplated transaction, which are expected to be
made in the near future. Further announcements will be made as appropriate.

Felix Evtushenkov, First Vice-President of Sistema, commented: “Investment in
the Argos Group presents an attractive opportunity, given the prospects of the
logistics segment in the oil industry, the highly-skilled management team of
the Argos Group, and potential synergy between the Argos Group and Sistema’s
oil assets. As a strategic investor Sistema will provide the Argos Group with
an opportunity to expand its business, strengthen its market position in
Western Europe and establish strong relations with Russian suppliers of
hydrocarbons.”

Peter Goedvolk, Chief Executive Officer of Argos, added: “We are highly
enthusiastic about having Sistema as our strategic investor as it will help us
to accelerate our growth strategy. There is good scope for cooperation between
the Argos Group as a large player in the oil trading and logistics market, and
Sistema’s upstream and downstream oil assets. Such cooperation will help us to
expand and strengthen our market positions both in terms of geographic
presence as well as product offering.”

Argos Group

The Argos Group is active in all segments of the oil and fuel related supply
chain in Western Europe. It services the entire value chain, from producer to
consumer. The Argos Group has its own distribution channels and uses its own
and leased infrastructure. Its annual turnover exceeds EUR 14 billion and 17,5
mln.m³ of various products, servicing over 100 fueling stations and operating
over 1,0mln.m³ of storage facilities. Over 800 FTE employees are globally
active in more than 20 countries. The core countries for Argos Group's
operations are Belgium, Germany, Luxemburg, the Netherlands, France and
Switzerland. Outside Europe, the company is active in Brazil, Singapore and
China.  For information about Argos Group , please visit 
http://argosenergies.com

                                     ***

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

Investor Relations            Public Relations

Evgeniy Chuikov               Vsevolod Sementsov
                          
Tel.: +7 (495) 692 1100       Tel.:+7 (495) 730 1705

ir@sistema.ru                 pr@sistema.ru

Sistema is the largest publicly-traded diversified holding company 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$ 8.1 billion for the second quarter of 2012, and total assets
of US$ 43.6 billion as at June 30, 2012. 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 MICEX-RTS Stock
Exchange, and under the symbol “SIST” on the Moscow Stock Exchange (MSE).
Sistema was ranked number 315 in the 2011 edition of the Fortune Global 500
list. Website: www.sistema.com

The Company is not an investment company, and is not and will not be
registered as such, under the U.S. Investment Company Act of 1940.

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. 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 or Argos or any of their
respective subsidiaries or 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 or Argos or
any of their respective subsidiaries and affiliated companies.

Contact:

JSFC Sistema