Valuation of shares acquired by Sistema in May 2008

(LSE disclosures http://www.londonstockexchange.com/en-gb/pricesnews/marketnews/marketnews.htm?bsg=true&ns=SSA)
SISTEMA PLANS TO INCREASE ITS STAKE IN SHYAM TELELINK
Sistema (LSE:SSA), the largest public diversified corporation in Russia and theCIS, which manages fast growing companies operating in the consumer servicessector, today announced that it has signed an amendment to a call optionagreement and sent a call option exercise notice to the promoters of ShyamTelelink to acquire a 21% stake in Shyam Telelink Ltd. ('Shyam Telelink'), anIndian telecommunications joint venture of Sistema.As previously announced, Sistema acquired a 51% stake in Shyam Telelink onJanuary 18, 2008 and entered into a call option agreement at that time. Suchcall option agreement gives Sistema the right to increase its stake in ShyamTelelink from 51% up to a maximum of 74% in approximately 16 months from todayfor a purchase price based on the fair market value of the company at the timeof such additional purchase.
On May 23, 2008, Sistema signed an amendment to the above-referenced call optionagreement, which gives Sistema a right to accelerate the purchase of theadditional 21% stake in Shyam Telelink. Sistema can exercise this right at anytime without waiting an additional 16 months from today as was stipulated in theoriginal call option agreement.In accordance with this amendment, Sistema has issued a call option exercisenotice to acquire the additional 21% of shares in Shyam Telelink for US$ 45million. The promoters of Shyam Telelink have also agreed to a number ofadditional obligations and conditions, including their participation in thepotential charter capital increase of Shyam Telelink of up to US$ 470 million,the provision of certain services, entry into a non-compete agreement andvarious other obligations for a term of 10 years. Sistema will be making additional payments between the time of the exercise of the option and September18, 2009 to compensate and incentivize the promoters in a total amount, which isthe greater of US$ 310 million or the fair market value of the 21% stake as ofSeptember 18, 2009. The promoters will contribute a significant proportion ofthe payments into the charter capital of Shyam Telelink.

SISTEMA INCREASES ITS STAKE IN SHYAM TELELINKMoscow, Russia - May 29, 2008 - Sistema (LSE: SSA), the largest publicdiversified corporation in Russia and the CIS, which manages fast growingcompanies operating in the consumer services sector, today announced that it hasincreased its stake in Shyam Telelink Ltd. ('Shyam Telelink') from 51% to 72%.As previously announced, Sistema acquired a 51% stake in Shyam Telelink onJanuary 18, 2008 and entered into a call option agreement at that time. The calloption agreement gave Sistema the right to increase its stake in Shyam Telelinkfrom 51% up to a maximum of 74% in approximately 16 months from today for apurchase price based on the fair market value of the company at the time of suchadditional purchase.On May 23, 2008, Sistema signed an amendment to the call option agreement, whichgave Sistema the right to accelerate the purchase of an additional 21% stake inShyam Telelink.In accordance with this amendment, Sistema has exercised a call option andacquired the additional 21% stake in Shyam Telelink.