SSA: JSFC Sistema: Statement re Sistema Completes Another Stage in the Reorganisation of Its Transportation Assets

  SSA: JSFC Sistema: Statement re Sistema Completes Another Stage in the
  Reorganisation of Its Transportation Assets

UK Regulatory Announcement

MOSCOW

FOR IMMEDIATE RELEASE July 3, 2013

 SISTEMA COMPLETES ANOTHER STAGE IN THE REORGANISATION OF ITS TRANSPORTATION
                                    ASSETS

Moscow, Russia – July 3, 2013 – Sistema JSFC (“Sistema”, the “Group” or the
“Company”) (LSE: SSA), the largest publicly-traded diversified holding company
in Russia and the CIS, today announces the completion of another stage in the
reorganisation of the Group’s transportation assets under the SG-trans OJSC
(“SG-trans”) brand: Sistema has sold a 15% stake in SG-trans to Unirail
Holdings Limited (“Unirail”) for RUB 2.5 billion. As a result of this deal,
Unirail and Sistema now each own 15% stakes in SG-trans.

As previously announced, 70% of SG-trans is owned by Financial Alliance LLC
(“Financial Alliance”), whilst Sistema and Unirail each hold 50% stakes in
Financial Alliance.

Upon completion of the reorganisation, Sistema and Unirail will have equal
ownership of, and management rights over, the railway assets, sharing the
risks and the initial investments of Sistema.

The final stage of the restructuring of Sistema’s rail assets involves the
merger of Financial Alliance with SG-trans under the SG-trans brand. This will
result in a new combined entity in which each party will own a 50% stake.
Sistema and Unirail will conduct the operational and strategic management of
the company on a parity basis.

In addition, as previously announced, Sistema plans to sell 100% of SG-trading
(comprised of SG-trans’ former non-core assets relating to LPG storage and
trading) to a third party.

The completion of the reorganisation and restructuring of the Group’s
transportation assets remains subject to the execution and implementation of
legally binding documents and receipt of necessary governmental and corporate
approvals by all parties.

Further steps in the strategic integration of the Group’s transportation
assets will be announced in due course.

                                     ***

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

Investor Relations        Public Relations
Evgeniy Chuikov              Yulia Belous
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$ 8.3 billion for the first quarter of 2013, and total assets of
US$ 44.9 billion as at March 31, 2013. 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. 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
 
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