OREANDA-NEWS. On April 29, 2008 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 the Board of Directors (the "Board") set the date for the Company's Annual General Meeting of Shareholders ("AGM") for June 28, 2008. Shareholders at the record date of May 17, 2008, are eligible to participate in the AGM, reported the press-centre of Sistema.

The Board recommended the AGM to consider the following:

1) Approve the Annual Report, the annual accounts, including the Company's profit and loss accounts for 2007;

2) Consider the profit distribution, approve the size, order, form and timing of dividend payment for 2007;

3) Elect the Audit Committee;

4) Elect the members of the Board of Directors;

5) Approve Sistema's Russian Accounting Standards and US GAAP auditors;

6) Adopt a new edition of Regulation on the Executive Board;

7) Adopt a new edition of Regulation on the Board of Directors

In addition, the Board of Directors recommended an annual dividend of RUB 2,512,500,000.00, or approximately US\\$ 107 mln, for the twelve months ended December 31, 2007 to holders of Sistema shares. The dividend, which amounts to a payment of RUB 0,25 per share, or approximately US\\$ 0,21 per Global Depositary Receipt ("GDR"), is more than five times higher than the dividend paid for the same period of 2006.

The Board recommended the higher dividend payment following the revision of the Company's dividend policy according to which Sistema intends to pay dividend of up to 40% of its US GAAP net profit going forward.

The changes in the dividend policy are aimed at increasing the shareholder value within the Company's business development strategy, as well as boosting return on investment.

The Board of Directors also recommended the AGM to elect new members of the Board as follows:

- Sergey Cheremin

- Vladimir Evtushenkov

- Alexander Goncharuk

- Alexander Gorbatovsky

- Vyacheslav Kopiev

- Stephan Newhouse

- Evgeny Novitsky

- Robert Skidelsky

- Ron Sommer

- Dmitry Zubov

If elected to the Board, Robert Skidelsky, Professor of Political Economy at the University of Warwick and a Fellow of the British Academy since 1994, will become the fourth Non-executive and Independent Director on the Company's Board.

Further information with regard to the AGM and other related issues will be available from May 28, 2008 on the Company's website at http://www.sistema.com/, as well as by request at Sistema's office at the following address: 17 Prechistenka Street, Moscow 119034, Russia.