Notification of change of depositary

FOR IMMEDIATE RELEASE

Moscow, Russia - May 6, 2016 - Sistema JSFC ("Sistema" or "the Company") (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company operating primarily in Russia and the CIS, announces that Citibank, N.A. has replaced Deutsche Bank AG as the depositary for the Company's Global Depositary Receipt ("GDR") programmes, effective May 6, 2016. The Company and Citibank, N.A. have entered into amendments to the Regulation S deposit agreement and Rule 144A deposit agreement, each dated October 22, 2012 and relating to the GDR programmes (as amended, the "Agreements").

Sistema's GDR holders do not need to take any action in connection with this notice.

Information regarding the new depositary:

Citibank, N.A. was originally organized on June 16, 1812, and is now a national banking association organized under the National Bank Act of 1864 of the United States of America. Citibank, N.A. is primarily regulated by the United States Office of the Comptroller of the Currency.  Citibank, N.A.'s principal administrative offices for its Depositary Receipts Services division are located at 388 Greenwich Street, New York, New York 10013, USA.

For more information about Citibank, N.A.'s Depositary Receipt Services please visit www.citi.com/dr

Copies of the Agreements are on file with Citibank, N.A. and shall be available to Sistema's GDR holders for inspection during normal business hours on any New York business day at the specified office of Citibank, N.A.

***

For further information, please visit www.sistema.com or contact:

Sistema is a publicly-traded diversified holding company in Russia and the CIS, which is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of RUB 708.6 billion for 2015, and total assets of RUB 1.3 trillion as at December 31, 2015. Sistema's global depositary receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the Moscow Exchange. Website: www.sistema.com

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. In addition, there is no assurance that the new contracts referenced above will be completed on the terms contained therein or at all. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.