AFK Sistema OAO : Results of Sistema's Board of Directors meeting

Results of Sistema's Board of Directors meeting

Moscow, Russia- December 16, 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 that its Board of Directors held a meeting on December 14, 2013, where a number of corporate matters were considered, including consolidated nine months results for 2013, the budget and management's KPIs for 2014, as well as the strategy and investments in a number of Sistema's subsidiaries. The Board also approved a new composition of the Group's Management Board and the appointment of Michael Hecker as Vice President, Head of Strategy, effective February 1, 2014. 

Biography background: 

Michael Hecker

Michael Hecker currently serves as Vice President for Strategy, M&A and Corporate Development, Member of the Executive Board at Mobile TeleSystems  OJSC ("MTS"). It is expected that his powers will be terminated at the meeting of the MTS Board of Directors on December 19, 2013. Michael Hecker joined MTS in 2006. From 2000 to 2006, Mr. Hecker worked at the consulting firm A.T. Kearney Europe, focusing on strategy, marketing and finance in telecommunications and consumer goods industries. Prior to that, he worked as a junior lawyer in Berlin and Brandenburg (Germany). 

Dr. Michael Hecker graduated in International Politics and Administration from the Pierre- Mendès-France University of Grenoble (France) and is a graduate in Law (1. and 2. German State Examination) and Modern History (M.A.) of the University of Göttingen (Germany), where he also holds a PhD in Constitutional History. 

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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$ 9.3 billion for the third quarter of 2013, and total assets of US$ 44.4 billion as at September 30, 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 2012 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.