AFK Sistema : Medsi Group and South Korea's Severance Hospital, with participation of Sistema and RDIF, sign cooperation agreement to establish a modern diagnostic centre in central Moscow

22/06/2018

Medsi Group and South Korea's Severance Hospital, with participation of Sistema and RDIF, sign cooperation agreement to establish a modern diagnostic centre in central Moscow

Moscow, Russia- 22 June 2018 - During the official visit of the President of the Republic of Korea to the Russian Federation, leading South Korean healthcare company Severance Hospital ('Severance'), leading Russian healthcare company JSC Medsi Group ('Medsi'), Sistema PJSFC ('Sistema') and the Russian Direct Investment Fund ('RDIF') signed a Cooperation Agreement (the 'Agreement') aimed at creating a modern diagnostic centre using the most advanced medical technologies and employing Russian and global best practices in the field of preventive medicine.

The Agreement was signed in the presence of the President of the Russian Federation Vladimir Putin and the President of the Republic of Korea Moon Jae-in by the Severance Hospital General Director Byung Seok Lee, Medsi President Elena Brusilova, Sistema President Andrey Dubovskov and RDIF CEO Kirill Dmitriev.

The parties will cooperate on the project to create a multidisciplinary innovative diagnostic medical centre in the Russian capital that will provide a level of medical care in line with the most modern global practices in diagnostics and treatment. Plans call for Medsi Group, a Sistema portfolio company, to manage the clinic.

Within two months of the signing of the Agreement, the parties intend to prepare and approve a roadmap for the implementation of the project.

The parties also intend to consider the possibility of developing a joint clinic within the framework of the project to create an international medical cluster in Otradnoye near Moscow that is currently under discussion, with financial support for the clinic provided by RDIF.

'Severance Hospital is one of the most active hospitals for overseas medical exchanges and wants to establish medical cooperation in various fields with Russia. Therefore, I think that the cooperation for the establishment of the Moscow Diagnosis Center will be a good opportunity for Severance Hospital and Russia to cooperate for mutual medical development, and I think it will be an opportunity to practice our mission of Severance Hospital, 'Free mankind from disease with God's love.' We look forward to the success of this collaborative project in the future, and look forward to a closer partnership between the Russian Direct Investment Fund, Sistema, and Medsi,' said Byung Seok Lee, General Director of Severance Hospital.

'Medsi Group's top priorities include the comprehensive furtherance of the development of modern medical technologies, the introduction of advanced medical practices and the expansion of long-term cooperation in order to improve the quality of medical diagnostics. The Group employs global best practices on the basis of its centres of excellence at Medsi clinical and diagnostic centres, clinics and hospitals. The strategic partnership with Severance Hospital will open up new opportunities for us to strengthen our competences in various fields of high-tech medicine, including high-precision diagnostics in oncology, cardiology and traumatology. We are confident that this joint project will be successfully implemented,' said Elena Brusilova, President of Medsi Group.

'This agreement once again confirms that Sistema and its subsidiaries are the Russian partners of choice for leading international companies. The signing of this agreement was preceded by several months of active work between Sistema and our Korean partners. We see excellent opportunities for creating and increasing shareholder value in our healthcare business, including through cooperation with leading international medical institutions,' said Andrey Dubovskov, President of Sistema.

'RDIF pays special attention to attracting investments in key areas such as technological development and quality of life improvement. This project combines the unique experience and advanced technologies of South Korean partners with the capabilities of Russian partners. Not only will it make a significant contribution to the creation of flagship medical institutions, but will also help improve the accessibility of high-quality medical services and development of preventive medicines,' said Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF).

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

Sistema PJSFCis a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, tourism and healthcare services. The company was founded in 1993. Its revenue in 2017 reached RUB 704.6bn; its total assets equalled RUB 1.1tn as of 31 December 2017. Sistema's global depositary receipts are listed under the 'SSA' ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the 'AFKS' ticker on the Moscow Exchange. Website: www.sistema.com

Medsi Groupis Russia's leading chain of private medical clinics, offering a full range of medical services - from primary care and emergency medical care to high-tech diagnostics, complex surgical interventions and rehabilitation. Medsi's assets include 25 clinics in Moscow and the Moscow region (including 2 children's clinics, 2 hospitals and 3 clinical and diagnostic centres), 12 clinics in Russia's regions, an ambulance service, a home care service, a medical wellness club and 2 sanatoriums. The total area of ​​Medsi clinics exceeds 233,000 sq m. Medsi's revenue in 2017 amounted to RUB 11.7bn. Roughly 8m people visit Medsi clinics every year. Medsi employs over 2,000 doctors.

Russian Direct Investment Fund (RDIF)is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. The fund acts as a catalyst for direct investment in the Russian economy. RDIF's management company is based in Moscow. Further information can be found at www.rdif.ru

Severance Hospitalwas founded in 1885 and is Korea's first westernized hospital. With the cooperation of the Korean government, two Americans, businessman and philanthropist Louis H. Severance and medical missionary Dr. Horace N. Allen launched what is now Korea's most globally advanced hospital. Severance Hospital has received accreditation from the Joint Commission International (JCI) for the first time in Korea, and has been acknowledged for employing state-of-the-art medical technology, including robotic surgery, to provide the highest standard of medical care to its patients. Since its first introduction in 2005, Severance Hospital performed over 20,000 robotic surgeries using da Vinci robotic surgical system as of June 2018, which is the largest number as a single institution in the world. Severance aims to provide the patients with the best and the most effective medical treatments within its 5 hospitals, 36 specialized centers and 2 specialized clinics. An estimated floating population of 40,000 visits Severance Hospital every day. The specialized care and the constant monitoring and support of the International Health Care Center staff ensure that more than 65,000 foreign patients visiting Severance Hospital each year have the best possible environment in which to get the treatment they need. Website: www.yuhs.or.kr/en/