Sistema Capital Markets Day 2007

1. Sistema Capital Markets Day 2007 London June 04, 2007 Vladimir Evtushenkov, Chairman of the Board of Directors Alexander Goncharuk, President Alexei Buyanov, Senior Vice President and Head of Finance and Investment Anton Abugov, First Vice President and Head of Strategy and Development

2. Disclaimer Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events revenues or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “predict”, “could”, plan”, “project,” “will,” “may,” “should” and similar expressions identify forward-looking statements. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, growth in demand for our products; economic outlook and industry trends; developments of our markets; legal trends and the impact of regulatory initiatives; and the strength of our competitors. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control and we may not achieve or accomplish these expectations, beliefs or projections. In addition, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the achievement of the anticipated levels of revenues, profitability and growth, cost and synergy of our recent acquisitions and restructuring, the timely development and acceptance of new products, the impact of competition and competitive pricing, the ability to obtain necessary regulatory approvals and the ability to fund our future operations and capital needs through borrowing or otherwise, the ability to successfully implement any of our business strategies, the ability to integrate our business and to realize anticipated cost savings and operational benefits from such integration, our expectations about growth in demand for our products and services, the effects of inflation, interest rate and exchange rate fluctuations, and our success in identifying other risk to our business and managing the risk of the aforementioned factors, the condition of the economy and political stability in Russia and the other markets of operations and the impact of general business and global economic conditions. Neither we, nor any of our respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.

3. Introduction to Sistema Career in Sistema • 2006: Chairman of the Board of Directors • 2005: President • 1995 – 2005: Chairman of the Board • 1993 – 1995: President • 1993: Founded Sistema Background • 2002 to present: member of the Board of Directors of the Russian Chamber of Commerce and Industry; member of the Government Commission on Science and Innovation Policy and a member of the Presidential Council on Science and High Technologies • 2001 to present: member of the Bureau of the Board of Directors of the Russian Union of Industrialists and Entrepreneurs, Head of the Union’s Committee on industrial policy • 1990 – 1993: Chairman of the Moscow City Committee on Science and Engineering • 1987 – 1990: Head of the Central Administration on Science and Engineering of the Moscow City Executive Committee • 1982 – 1987: Chief Engineer and subsequently first Deputy General Director of the Polymerbyt Scientific and Production Association • 1975 – 1982: Deputy Director and Chief Engineer at the Karacharovo Plastics Works Education • 1980: The School of Economics of the Moscow State University • 1973: D. Mendeleev Moscow Chemical Engineering Institute Vladimir Evtushenkov

4. Russian Economic Development in 2006 Real GDP Growth, % Real Disposable Income Growth (%)and Consumer Loans ($ bln) Central Bank Reserves ($ bln) and Inflation (%) Retail Markets and Services Growth (%) Benign macroeconomic environment for Sistema businesses

5. Operational Results Career in Sistema • 2006 to present: President; Member of the board of Sistema, Sistema Telecom, Sitronics, Sistema-Hals, Sistema Mass Media • 2003 – 2006: General Director of Concern Sitronics • 1998 – 2003: President of Sistema Telecom • 1995 – 1998: Vice President of Sistema • 1998 and 2002-2003: Chairman of the Board, MTS Background • 1991 – 1993 General Director of Insurance Company Leader • 1987 – 1991: Senior officer at the Main Headquarters of the Navy Education • 1987: Grechko Naval Academy • 1978: Sevastopol Naval Engineering Academy Alexander Goncharuk

6. Consolidated revenuesup 43% year on year to $ 10.9 billion • OIBDAup 36% year on year to $4.0 billion • Net incomeup 52% year on year to $813 million • Total consolidated assetsup 54% year on year to $20.1 billion • Earnings per shareup 67% year on year to $94.4 • Successful IPOs and listing on London Stock Exchange: • $1,060 million raised by Comstar UTS in February 2006 • $432 million raised by Sistema Hals in November 2006 • Acquisition of 25%+1 stake in Svyazinvest for $1.3 billion in December 2006 Highlights of 2006 Solid financial results along with successful investment operations

7. Sistema Consolidated Financials (US GAAP) Revenues ($ bln) OIBDA ($ bln) CAGR 26% CAGR 38% +36% +43% Net Income ($ bln) Consolidated Debt ($ bln) B BB - BB - S&P Credit Rating CAGR 50% +52% Accelerated growth while maintaining sound financial position

8. Top Management Appointments in 2006 Sistema Alexander Goncharuk President February 2006 Anton Abugov 1st Vice-presidentHead of Strategy and Development August 2006 Denis Muratov Vice presidentHead of Innovations February 2006 Telecom Technology Banking Retail Mass Media Leonid Melamed MTS April 2006 Evgeny Utkin Sitronics February 2006 Sergey Zaytsev MBRD July 2006 Maxim Yentyakov Detsky Mir July 2006 Michael Dounaev SMM January 2006 Key management appointments at Sistema and its major businesses were made in 2006

9. Unjustified Discount to Net Asset Value $ 19.5bn 2.1 -0.9** Non-listed assets*(11%) 18.6 28% discount, or $5.2 bn 17.4 Publicly traded assets***(89%) 13.3 Portfolio Capitalisation Corporate Net Debt NAV Sistema MCap *** * Sistema management valuation, **as of March 31 2007, *** Closing prices on 31.05.2007 Sistema stock is traded with 28% discount to Net Asset Value making it deeply undervalued

10. Retail Telecommunications Telecommunications Mass Media Tourism Banking Sistema Portfolio Public companies Non-public businesses Others Long Distance Mobile Fixed Line CDMA Oil & Petrochemicals Technology Real Estate Healthcare Radars and Aerospace Diversified portfolio guaranteeing continued growth over the long term

11. Major Developments in Public Businesses in 2006 – 2007 • Revenue and OIBDA growth by 28%; OIBDA margin exceeded Vimpelcom’s (50.6% vs. 50.4%) • Customer base grew by 25% and reached 74 mln • Mr. Leonid Melamed appointed CEO of MTS; re-branding and management strengthening led to MCap exceeding $20 bln • Revenue growth by 23%, OIBDA by 2% • Broadband client base increased by 67% • $1.06 bln raised during IPO on LSE in February 2006 • 25% + 1 stock of Svyazinvest acquired for $1.3 bln • Revenue growth by 204%, OIBDA by 500% • Project development pipeline grew by 20% • IPO at London Stock Exchange, post-money valuation over $2 bln • Sistema-Hals portfolio valuation by Cushman & Wakefield as of Jan 01, 2007 was 35% up vs. that as of June 30, 2006 • Revenue growth by 68%, OIBDA by 11% • External (outside Sistema group) sales share reached 78% • Acquired 51% of Intracom Telecom (Greece) • Established a strategic alliance with Cisco and STMicroelectronics (0.18µ)

12. Major Developments in Fast Growing Private Businesses • Revenue growth by 90%, OIBDA by 71% • Explosive growth of retail business: the portfolio increased 5 times to over $350 mln; the total retail market doubled • Reached Top30 by total assets and Top20 in the most rapidly growing car loans and mortgages sectors • Revenue growth by 61%, OIBDA by 75% • Total sales area exceeded 100,000 square meters, 29 new stores opened bringing a number of stores to 65 • A desirable tenant for middle and upper middle class shopping centers • Revenue growth by 106%, OIBDA by 125% • Stream-TV is the largest pay-TV operator in Russia with 15% market share. Presence in 37 cities, 3.5 million households passed • Mobile TV (DVBH): pilot project in Moscow; acquisition of licenses in 17 largest cities of Russia • Maxima advertising agency in top10 media buyers in Russia; presence in Ukraine, Belarus, Kazakhstan • Revenue growth by 176%, OIBDA – 8 times • Significant market position strengthening after acquisition of the Cosmos Hotel and Riviera and Skyway tour operators (Intourist is #1 tour operator in RF) • 99 retail outlets (12 in Moscow, 23 in St-Pete, 33 subsidiaries in regions) • 2,300 hotel rooms under management

13. Sistema Value Added to Businesses in 2006 • New KPIs approach and business specific KPIs developed • Management compensation linked to KPIs • Svyazinvest • Intracom Telecom • UCN Cable TV • Sale of Rosno (Sistema’s own M&A activity) KPIs M&A Support GovernmentRelations Access to capital • Sistema invested over $5 bln in 2006 in its business lines • Global satellite navigation system GLONASS • The Center for Management in Crisis Situations for the Ministry of Emergencies StrategicPartnerships ManagementSupport • Strengthening mgmt teams of • Telecoms • Rosno • Retail • ST Microelectronics • Cisco Sistema holding structure proved beneficial to our portfolio businesses

14. Sistema Management’s Top Priority • We have streamlined and segmented our portfolio to focus capital and management resources on the most value adding businesses • Sistema management sees as its top priority achieving fair valuation of Sistema shares by the market • We will grow the share of non public businesses in our portfolio as well as improve our management approach including new KPIs and incentive principles

15. Finance Career in Sistema • 2002 to present: SeniorVice President and Head of the Finance and Investment Complex; Member of the Board of the following companies: MTS, Sistema Telecom, MBRD, East-West United Bank, Sistema-Hals, Detsky Mir Center • 1998 – 2002: Vice President of MTS • 1996 – 1997: Vice President and First Vice President at Sistema-Invest • 1994 – 1996: various positions at the Property Complex Background • 1992 – 1994: researcher at the Institute of Mechanics Problems (IMP) of the Russian Academy of Sciences Education • 1992: Moscow Physics and Engineering Institute Alexei Buyanov

16. Consolidated US GAAP, $ mln 2003 2004 2005 2006 Profit & Loss Revenues 3 760 5 711 7 594 10 863 Growth (y-o-y) 51,9% 32,9% 43,1% Depreciation and amortisation -521 -800 -1 024 -1 290 (1) Operating Income 1 106 1 665 1 934 2733 Growth (y-o-y) 50,5% 16,2% 41,3% Margin 29.4% 29,2% 25,5% 25,2% Net Income 387 411 534 813 Growth (y-o-y) 6,2% 29,9% 52,2% Margin 10.3% 7,2% 7% 7,5% (2) OIBDA 1 627 2 465 2958 4 023 Margin 43.3% 43,2% 37% 37% Balance Sheet Total Assets 6 840 8 779 13091 20131 Total Debt 2 685 3 065 4371 6874 Net Debt 2 402 2 561 3888 6330 Shareholders’ Equity 989 1 436 3234 4521 Cash Flow Cashflow from Operations 935 1 904 1 793 2116 Cashflow from Investments -2 273 -2 064 -4 276 -5372 Cashflow from Financing 1 464 381 2 462 3 317 Notes: (1) Operating Income is calculated as revenues less operating costs, plus income from equity investees and net gain or loss on sale of subsidiaries. (2) OIBDA represents the sum of operating income, depreciation and amortisation Financial Highlights Sistema’s financial performance consistently improving year after year

17. 55,9% Telecommunications 7476 3576 47,8% 3 543 7,9% Technology 1 611 172,5 10,7% 505 -1,7% Insurance 639 46,4 7,3% (112) 2,7% Banking 228 37,2 16,3% 163 23,7% Other Businesses (inc. corporate) 1 372 468,2 34,1% 1 502 88,5% AGGREGATE TOTAL 11 326 4301 38,0% 5 601 Intra-segment eliminations -328 -184 11,5% 729 100% Consolidated TOTAL 10862,8 4 023,5 37,0% 6 330 Incumbent - Alternative - fixed fixed 5,7% (MGTS) 9,3% Wireless (MTS) 85% Segmental Analysis Segment ($ mln) Revenue OIBDA % Margin Net Debt Net Debt, % (Cash) 2006 Revenue Breakdown – Telecom Contribution 12% 2% 6% Telecom Technology Insurance Banking 14% Other 66% Telecom business is the key revenue driver

18. Diversification 2006 2005 Others Others 27% 35% Revenue Telecom 65% Telecom 73% Others Others 13% 21% OIBDA Telecom Telecom 79% 87% Others 26% Others 37% Assets Telecom 63% Telecom 74% Contribution of non-telecommunication segment continues to increase

19. Business line Uses of Cash Sources of Cash Sistema's Holdco Cash Impact CapEx M&A Operating FCF Access to Third Party Capital MTS Moderate Possible Positive Established + Comstar Moderate Yes Positive Established + MGTS TariffDriven None Positive Established + Sitronics Moderate Yes Break-even Established +/- Sistema-Hals High Yes Break-even Established +/- MBRD Moderate Possible Break-even Established +/- Intourist High Yes Break-even Established +/- Detsky Mir High Yes Negative Established - Mass Media High Yes Negative None - Radar and Aerospace High Yes Negative None - Healthcare High Yes Negative None - Bashkir oil None Yes Positive Established + Capital Allocation Sistema is focused on growing non public assets

20. Credit Ratings Agency Date Rating Outlook S&P BB- Positive 01/02/2007 Fitch Ratings B+ Positive 28/04/2006 Moody’s B1 Stable 19/11/2003 S&P BB- Positive 01/02/2007 Moody’s Ba3 Positive 10/05/2007 S&P BB- Positive 01/02/2007 Moody’s Ba3 Stable 19/01/2006 S&P BB- Positive 01/02/2007 Moody’s Ba3 Stable 10/05/2007 Fitch B- Stable 14/02/2006 Moody’s B3 Stable 16/02/2006 Fitch B Positive 19/02/2007 Moody’s B1 Stable 14/12/2004 Sistema MTS MGTS Comstar Sitronics MBRD

21. 2006 2005 2004 2003 Telecommunications 3908,9 3076,4 2138,7 1845,8 Technology 505,3 96,5 27,5 33,8 Insurance 1,3 1,0 0,5 3,2 Banking 399,1 150,0 7,3 - Mass Media 17,7 13,8 - - Real Estate 359,7 39,0 - - Retail 90,9 45,5 - - Corporate and Other 1590,6 948,4 890,9 802,6 Total 6873,6 4370,6 3064,9 2685,4 Others 20% Telecommunications Corporate 57% 23% Debt Level $ mln, US GAAP Loans vs Bonds Debt structure Public Non-public 45% 55% Debt portfolio is allocated among all divisions

22. OIBDA/Interest Expense Total Debt/OIBDA 18,0x 11,5x 11,5x 1,67x 1,64x 1,71x 8,2x 1,46x 6,9x 1,20x 2002 2003 2004 2005 2006 2006 2002 2003 2004 2005 Strong Financial Position • Strong liquidity position • Prudent approach to leverage • Easy access and well established reputation in capital markets • Credit profile confirmed by rating agencies • Maturity profile matching the company’s investment cycle Strong financial position confirmed by solid ratings

23. 31% 27% 24% 34% 23% 23% 2004 2005 2006 2004 2005 2006 Portfolio Management Indicators Return on Total Assets(1) Return on Equity(2) 36% • Notes: • Calculated as OIBDA / Average Total Assets • Calculated as Net Income / Average Book Equity Efficient use of assets and good measure of corporate profitability

24. Sistema Strategy Career in Sistema • 2006: First Vice president and Head of the Strategy and Development Group; a Member of the Board of Sitronics, Svyazinvest, Sky Link Background • 2003 – 2006: Managing Director at Rosbank • 1997 – 2006: Strategy adviser to Tatar-American Investments and Finance Group (TAIF) • 1999: Adviser to RAO UES • 1998 – 2002: Director of Corporate Finance at UFG Education • 1998: National Economy Academy under the Government of the Russian Federation Anton Abugov

25. Sistema Strategy Highlights • Invest in our fast-growing non-public businesses • Acquire more non-public assets in the industries we are already present in • Take businessespublic only after extracting maximum value for existing shareholders • Become a strategic partner of the State: supplier of goods and services and co-investor in PPP projects • Explore technology and services convergence in telecommunications

26. Sistema Management Approach • Portfolio segmentation by asset type: public/private, controlling/minority holdings, start-up/rapidly growing/mature • Investmentprinciples, a management model and incentives for the management tailored to different types of assets • Set of customized KPIs for all Business Lines • Simplicity and measurability with only 5-7 indicators • Maximizing the shareholder value creation • Benchmarking to market and competitors • Recruitment of the best managers and specialists available in the market;stock option motivation schemes • All monetary incentives linked to meeting the KPIs • Phantom stock options on Sistema and our subsidiaries’ shares as well as deferred stock bonus

27. Customised KPIs for Sistema businesses (part 1) Return on capital becomes the priority indicator for Sistema

28. Сustomised KPIs for Sistema businesses (part 2) Businesses must improve their competitive positions and outperform competitors rather than just meet business plan targets

29. New Reward & Incentives Scheme SHORT-TERM MOTIVATION INSTRUMENTS LONG-TERM MOTIVATION INSTRUMENTS Annual Cash Bonus Sistema Phantom Stock Option Sistema Stock Bonus Sistema Subsidiaries Stock Option • Linked to individual KPIs • The right to receive cash deferred by 3 years conditioned to Sistema performance • Stock bonus deferred by 3 years conditioned to Sistema performance • The right to acquire shares of receive cash deferred by 3 years conditioned to business long-term KPIs Sistema has adopted a new motivation system for all managers through the entire Corporation aimed at creating strong incentives to grow the shareholder value

30. Sistema Portfolio Transformation (Strategic Goal) Current Portfolio Fast Growth of Non-listed Companies “А Big Deal” (e.g. petrochemicals) Proactive search and investments in new non-listed opportunities 2007 – 2009 2007 – 2010 г. Big Deal Public Companies (including Bashkirian Oil) Public Companies (not inclusive Oil) 25% New Private 30% 75% 55% 15% 90% Public 45% 15% 15% 10% 10% 15% Non-Listed (from current Portfolio) Public Bashkirian Oil Non-Listed (from current Portfolio) Sistema will strive to raise the non-listed companies share in our Portfolio to make the stock more attractive. We will invest in our current growth opportunities with potential new investments closer to 2010

31. Waves of Growth IV Radar & Aerospace Travel Health Care Petrochemicals III Banking Retail Mass Media (to follow) II Sitronics Sisitema Hals (Round Table 2) I Telecommunications (Round Table 1) 1995 2003 2005 2007 Sistema’s diversified portfolio ensures steady growth of the Corporation. We will give some of the highlights of the 4th wave further in this presentation

32. Radars and Aerospace: CRTIS Results and Outlook Revenues and OIBDA ($ mln) Major Developments in 2006 • CRTIS market segment share up from 10,5% to 16%**. • Government-ordered defense R&Daccounted for $72 mln. • Started implementation of the The Center for Management in Crisis Situations project as a main contractor of the Ministry of Emergencies (together with Sitronics) • Expanded into civil and civil-defense B2G areas (contracts with Ministries and Federal Agencies other than Defense) +92% B2G Contract Portfolio to 2015 ($ mln)* Market Trends, Positioning and Strategic Outlook • Monopoly supplier of strategic missile defense solutions (radar technology) in the $750 mln market segment of defense information, communication and navigation systems (grows at 10-14% per year**) • Capitalize on over than 60 years of defense R&D in the area of radar and aerospace technologies • Expand expertise in the area of large-scale federal projects like GLONASS • Invest in developing leading edge products and solutions. * 2007-2015 State Arms DevelopmentProgram **CRTIS estimates CRTIS will continue capitalizing on the R&D expertise, implementing complex B2G projects and focusing on the leading edge R&D for new markets

33. Travel: Intourist Results and Outlook Revenues and OIBDA ($ mln) Major Developments in 2006 • Significant market position strengthening after acquisition of the Cosmos Hotel and Riviera and Skyway tour operators (Intourist is top-1 tour operator in Russia) • 133retail outlets (102 in ownership, 31 franchisees) • 2,300 hotel rooms under management • One of the largest air charter consolidators (over 100,000 passengers in 2006) +176% Number of Tourists Serviced (‘000)(packaged tours) Market Trends, Positioning and Strategic Outlook • Vertical integration strategy in rapidly growing Outbound segment • Projected market growth rate >15% (5% of Russians travel abroad vs. 40% in Germany) • 3% current market share with the target to multiply it several times by 2010 • Aggressive capturing the market by building own retail chain selling up to 50% of own product • Travel product value proposition via own hotel management in Russia and abroad • Alliance with an air charter company to control the fleet • Retaining the leadership position on the Inbound market Intourist became top 1 travel company in Russia in 2006 and has ambitious strategic plans to multiply its market share in several years on the rapidly growing Outbound segment

34. Health Care: Medsi Results and Outlook Revenues and OIBDA ($ mln) Major Developments in 2006 • A new holding company Medsi Group created for Sistema’s health care assets • New clinics format developed • Several constructions started • MedsiII clinic opened in 2005 is recognized by major insurance companies as the best Moscow clinic for children +64% Market Trends, Positioning and Strategic Outlook • Market ($5-8 bln, with Moscow accounting for 35%) grows more than 20% year-on-year with Top 3largest clinic operators owning less than 3% of the market • Development of a leading private healthcare services company in Russia with best comprehensive medical care and largest chain of private clinics • National healthcare services brand creation • Strategic partnership with an expert for hospital networkdevelopment • Acquisition of well-run competitors and consolidation of the market Services (‘000) and patients (‘000) Medsi is uniquely positioned to take advantage of the paid healthcare market growth

35. Petrochemicals: Bashkirian Oil Assets Sistema’s Bashkirian Oil Assets Strategic Outlook Oil Business • A strategic asset, generating satisfactory returns • Looking for opportunities to increase our stakes up to controlling to create a vertically integrated oil company • Using our business restructuring expertise to maximize shareholder value Opportunity in Petrochemicals • Strengthening of cooperation with Nizhnekamskneftekhim (current supplier of ethanol for Ufaorgsintez) • Potential alliance with other players and creation of a leader in petrochemicals in Russia - in a technologically advanced sphere where cash rich oil giants are reluctant to invest at the moment Oil and Petrochemicals Industries in Russia • Nearly half of Russian oil production was exported in 2006 (233 mln tons of 480 produced) • Leading Oil producers see petrochemicals as their second priority as crude oil prices stay high • Russian demand for petrochemical products (synthetic rubber, polyethylene and polypropylene ect.) is growing at 10% pa (official reporting) Financial investment with an option to develop a leader in technologically advanced sphere of petrochemicals in Russia

36. Sistema as a partner of the State Examples of current and potential projects Increasing government spending and State investment programs present additional business opportunities for Sistema businesses

37. Contacts Investor Relations tel. +7 (495) 629 2741 www.sistema.com ir@sistema.ru