OREANDA-NEWS. On February 06, 2007 Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, announced that it has completed integration of its Healthcare Services division's assets into the "Medsi Companies Group" Holding ("the Medsi Group" or "the Group"), 100% owned by Sistema, reported the press-centre of Sistema.

In line with the development strategy stated in September 2007 Sistema transferred to Medsi Group its 20% stake in MedExpress, which comprises 26 clinics in Moscow and the regions and an ambulance service; 100% of American Hospital Group, a family clinic operating under the "American Medical Centres" brand for VIP clients and expatriates; 53,3% of the Medsi clinic, an out-patient clinic for adults. Sistema is also investing RUB 900 million in the creation of the holding (USD $36 mln.). The additional share issue of the Medsi Group totaled RUB 1,89 billion (USD $77 mln.).

Following the first stage of the integration, the Medsi Group owns 100% of MedExpress and the American Hospital Group, and 70% of the Medsi clinic. Furthermore, the Group owns 100% of the Family Medicine Corporation ("FMC") providing VIP clients' medical assistance at home. The Healthcare Services division also comprises the out-patient clinic for children, Medsi II. Its shares are being transferred to the Group. In line with Medsi's development strategy, the Group plans to create a chain of 100 clinics by 2011. The Medsi clinic and Medsi II reported revenues of US$ 17 million, the American Hospital Group - US$ 6 million, MedExpress - US$ 21 million and FMC - US$ 12 million as at December 2006.
 
Alexander Goncharuk, President and Chief Executive Officer, commented: "We are focused on implementing Sistema's stated development strategy which includes priority development of its non-public assets. The healthcare services division is one of the key growth areas for us. I expect the newly created Medsi Group to become a leading player in the fast growing private healthcare services sector which demonstrates a high growth potential."