OREANDA-NEWS. October 17, 2007. Sistema (LSE: SSA) ("Sistema" or "The Group"), the largest private sector consumer services company in Russia and the CIS, announced that it has completed the acquisition of a 28.16% stake in Dalcombank, a commercial bank based in the Far East of Russia, for a total cash consideration of US$ 11.7 million. As a result of this acquisition Sistema increased its ownership in Dalcombank to 48.16% for a combined cash consideration of US$ 20 million. 

The acquisition of shares in Dalcombank is in line with the development of Sistema`s banking group, which presently comprises Moscow Bank for Reconstruction and Development (MBRD) and East-West United Bank (Luxembourg). Dalcombank is a leading bank in the Far East region of Russia with a wide retail network, which complements the existing network of the Group.     

Alexander Goncharuk, President and Chief Executive Officer of Sistema, commented: "Banking business is one of the key "points of growth" for Sistema. The acquisition of shares in Dalcombank will allow us to enter several regions of the Far East at the same time and to significantly expand our client base."