AFK Sistema : Investment in OZON

Investment in OZON

Moscow, Russia - April 29, 2014 - Sistema JSFC ("Sistema" or the "Group") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces that it has signed binding agreements to participate in a private placement of OZON Holdings Limited ("OZON"), one of Russia's largest e-commerce businesses. The closing of the transaction was completed upon signing. 

Under the agreement, Sistema has acquired a 10.8% stake for US$ 75 million in OZON. MTS, Sistema's telecoms subsidiary, has also acquired a 10.8% stake at the same valuation. As a result, two representatives from Sistema and MTS are expected to join OZON's Board of Directors. 

OZON owns five e-commerce companies in Russia: OZON.ru, the largest multi-category online shop in Russia with more than 750,000 unique visitors per day;  Sapato.ru, one of the leading e-commerce store of shoes, accessories and apparel; OZON.travel, the leading Russian online travel agency; О-Courier, OZON's dedicated delivery service operating a network of companies and agents across Russia and Kazakhstan with over 2,200 pick-up points; and OZON Solutions, a B2B consultancy, which helps businesses to succeed in the e-commerce universe.  

Further details on this transaction can be found in the presentation available on www.sistema.com 

Mikhail Shamolin, President and CEO, commented:

"Sistema's investment in OZON provides the Group with an excellent entry into Russia's rapidly growing e-commerce sector. Having captured over 16 million unique monthly visitors, OZON is a household brand with a loyal customer base, growing goods assortment and an excellent logistical platform. This investment, while financial in nature, also provides Sistema's other businesses with numerous partnership and synergies opportunities which will prove mutually beneficial for all." 

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

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$ 35.9 billion for the full year of 2013, and total assets of US$ 43.2billion as at December 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 Moscow Exchange. Sistema was ranked number 308 in the 2013 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. 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.