SSA: JSFC Sistema: Statement re SISTEMA ACQUIRES 50% OF FINANCIAL ALLIANCE LLC

  SSA: JSFC Sistema: Statement re SISTEMA ACQUIRES 50% OF FINANCIAL ALLIANCE
  LLC

UK Regulatory Announcement

MOSCOW

FOR IMMEDIATE RELEASE December 28, 2012

                SISTEMA ACQUIRES 50% OF FINANCIAL ALLIANCE LLC

Moscow, Russia – December 28, 2012 – Sistema JSFC (“Sistema”, the “Group” or
the “Company”) (LSE: SSA), the largest publicly-traded diversified holding
company in Russia and the CIS, today announces that it has acquired 50% of the
authorised capital of Financial Alliance LLC (“Financial Alliance”), a
professional railcar operator, from ANK Bashneft JSC (“Bashneft”), Sistema’s
subsidiary. This transaction is in line with Bashneft’s strategy to divest its
non-core assets. Bashneft acquired 50% of the authorised capital of Financial
Alliance in August 2012 by transferring its fleet of approximately 4500
railcars to it.

The total amount of the deal is set at RUB 3.41 billion (approximately US$ 110
million). An independent valuation of Financial Alliance was conducted by
Ernst & Young.

Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented:
“The acquisition of 50% of the authorised capital of Financial Alliance
enables us to begin the consolidation of the Group’s rail transportation
assets. This will provide additional momentum for the development of these
assets and increase the efficiency of the decision-making process”.

Financial Alliance LLC is a joint venture of Sistema JSFC and a group
representing the company’s management team. Financial Alliance owns, leases
and rents approximately 12,000 railroad tankers and open railcars. The
company’s core activities are management of its own and leased railcar fleet,
as well as provision of freight services (operating) and subleasing.

                                     ***

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$ 8.8 billion for the third quarter of 2012, and total assets of
US$ 46.3 billion as at September 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 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.

Contact:

JSFC Sistema