MOSCOW -- Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced the appointment of Leonid Melamed as President and Chief Executive Officer of Sistema with immediate effect, following a decision made at a meeting of the Board of Directors. Mr Melamed is the former CEO and President of Mobile TeleSystems ("MTS"), the largest mobile phone operator in Russia and the CIS and a subsidiary of Sistema.

Leonid Melamed will replace Alexander Goncharuk, who will continue to serve as First Deputy Chairman of Sistema's Board of Directors. Mr Goncharuk has been a member of the Board of Directors of Sistema since 1996. From 1995 to 1998, he occupied the post of Vice-President of the Corporation. From 1998 to 2001, he headed the telecommunication holding Sistema Telecom, and from 2003 to 2006, was head of Sitronics. During this time, Sitronics became the largest public technology company in Eastern Europe. In 2007, Sistema Hals became the first public Russian real estate company to list on the London Stock Exchange. The non-public assets of Sistema grew quicker than the market in such sectors as finance, retail and paid-for healthcare services.

After two years the market capitalization of Sistema has grown by 40%, exceeding US$ 16 billion. Sistema's revenues during this period have grown by 80% and constituted US$ 13.7 billion in 2007.

Sistema JSFC (London: SSA)