Regarding motion to increase amount of legal claim

Regarding motion to increase the amount of legal claim

Moscow, 25 May 2017 - Sistema PJSFC ("Sistema" or "the Company") (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company operating primarily in Russia and the CIS, announces that it has received a motion filed by Rosneft and PJSOC Bashneft with the Republic of Bashkortostan Arbitration Court to increase the amount of damages under their legal claim against the Company and its subsidiary Sistema-Invest JSC to the amount of RUB 170,619,477,257.91.

In accordance with the Rosneft and PJSOC Bashneft legal claim, the claimants alleged to have suffered damages as a result of the reorganisation of PJSOC Bashneft in the amount of RUB 106,629,934,819.

The claimants substantiated their request to increase the amount of alleged damages by stating: "since 2014 the US dollar exchange rate has significantly increased, while the rouble purchasing power has significantly dropped." This means that the Russian state-owned companies Rosneft and PJSOC Bashneft are basing the amount of their claims against the Russian companies Sistema and Sistema-Invest JSC for alleged damages incurred in Russia on the USD/RUB exchange rate.

The Company believes that the motion, and the lawsuit itself, are groundless from both legal and economic standpoints.

Guided by its policy of openness, Sistema has published the motion filed by Rosneft and PJSOC Bashneft to increase the damages on its website: http://www.sistema.com/investors-shareholders/update-on-a-claim-involving-sistema/.

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Sistema PJSFC is a publicly-traded diversified Russian holding company serving around 150 million customers in the sectors of telecommunications, retail, agriculture, paper and packaging, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. Founded in 1993, the Company reported revenues of RUB 697.7 billion for 2016 and total assets of RUB 1.1 trillion as at 31 December 2016. Sistema's global depository 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