OREANDA-NEWS. Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that its Board of Directors approved a plan for the reorganization of the Company's corporate structure at its meeting on June 30, 2007. 

Sistema Telecom will now become an operating division of Sistema and will be renamed as the ‘Telecommunications Asset Management' division.  The division will include the technology policy and strategic planning departments. In addition, a new division has been created to manage and develop Sistema's unlisted assets. Separately, the Science and Innovations division will be transformed into the Innovations & Ventures division, with broader responsibility for the development of new businesses.

The combined payroll of Sistema and Sistema Telecom will be reduced by approximately one third as a result of the reorganization. The combined structure will employ approximately 300 full time members of staff following the reorganization.

Alexander Goncharuk, President and Chief Executive Officer, commented: "These changes will increase our operating efficiency and streamline our decision making processes.  The revised structure provides for the allocation of dedicated resource to manage the development of our unlisted assets, which have substantial growth potential and are expected to be significant value drivers for Sistema moving forward".