OREANDA-NEWS. July 17, 2007.  "Detsky Mir" LLC, children's goods retail subsidiary of JSFC Sistema (LSE: SSA), today announced the decision made at the Annual General Meeting of its shareholders ("AGM") on June 28, 2007  about dividend payment. 

The AGM approved an annual dividend of RUR 2.39 RUR (approximately US$ 0,09) per ordinary share, or approximately US$ 0.038 per Global Depositary Receipt ("GDR"), for the twelve months for ended 31 of December 2006

The dividend payment, which amounts to approximately RUR 52.8 mln or approximately US$ 2.046 million, represents approximately 32% of Detsky Mir's consolidated net income for the full year 2006 and is due to be paid until 31 of December 2007. In 2005 the dividends were RUR 48 mln (US$1.679 mln), in 2004 - RUR 45 mln (US$ 1.55 mln).

In addition, the AGM approved the Company's annual report, the Company's financial report including P&L statement for 2006 financial year ended 31 of December 2006.

Baker Tilly Russaudit was appointed as Sistema's Russian Accounting Standards auditor for 2007.

Detsky Mir, or the "Children's World", is the largest children's goods retail store chain in Russia and one of the most recognizable consumer brands. Detsky Mir Group had revenues of US$ 335.3 million for the year ended December 31, 2006. Detsky Mir operated 74 stores in Russian regions, including our flagship store in the central Moscow. Detsky Mir - Centre is the principal retail operator providing retail business management for Detsky Mir Group. Detsky Mir - Centre coordinates the Group's marketing and product strategy, financial and IT policy, development, purchasing and logistics, as well as brand support and development. Detsky Mir - Centre is 100% owned by Sistema JSFC.