AFK Sistema OAO : Vladimir Khanumyan leaves SMM

Vladimir Khanumyan leaves SMM

Moscow, Russia- February 3, 2014 - OJSC Sistema Mass Media ("SMM" or the "Company"), one of the leading media holding companies in Russia, today announces that, during its meeting on January 31, 2014, the Board of Directors has accepted the resignation of Vladimir Khanumyan as the Company's President. Grigory Sukhov, Vice President for Finance and Investments at SMM, will act as President in the meantime.  

Vladimir Khanumyan commented: "I am grateful that I have had the opportunity to work with such an excellent team of professionals during my time at SMM. Sistema, the Company's shareholder, is currently one of the best management teams in the market, and I am pleased that I have had the opportunity to work with them. 2013 was a fruitful year for SMM - during the year, we worked on optimising our business processes and managed to return the Company to a profitable level. In addition, we set strategic vectors for SMM's development that will strengthen its market position in the traditional media and make it a serious player in the new media market." 

The Company is currently in the process of selecting a candidate to replace Mr Khanumyan. The candidate for this position will be announced once SMM completes its selection process and signs all the relevant documentation. 

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JSC "Sistema Mass-Media" (SMM) - is one of the Russia's largest media holdings that holds leading positions in three strategic market segments: off-the-air television, production/distribution of TV and film content and provision of advertisement services. SMM owns CJSC "STREAM Television Company", CJSC "Russian World Studios", JSC "Maxima advertising" and LLC "Digital TV Broadcasting". Media holding was founded in 1998 and in 2002 became a part of JSFC "Sistema". 

Some of the statements provided in this presentation might include estimations and assumptions in regards to the future events of JSC "Sistema Mass-Media" and JSFC Sistema. Such estimations or assumptions may include the words "expected", "evaluated", "intend", "will be/shall be", "might be", as well as other similar words and their negative forms. We would like to inform you that all of such statements must be only considered as assumptions and estimations of the described events, however, the actual situation regarding those assumptions and estimations might be significantly different. It was not intended in this document to reformulate such statements in order to reflect the actual situation and events, which might arise after the stated date, and it also was not intended to reflect or describe the events, that might come but are not expected at the present moment. Because of many factors, the real operating results of JSC "Sistema Mass-Media" and JSFC Sistema might be significantly different from those stated right now in the documents, expressing our expectations and prognoses; such factors may include the changes in the economic conditions, changes in the competitive environment of our economic sector, risks that we might take in connection to operating in Russian Federation, dynamic technological and market changes of our economic sector, as well as many other risks, directly connected to JSC "Sistema Mass-Media", JSFC Sistema and their business activities.