Removal of restrictive measures on shares of MTS

Removal of restrictive measures on shares of MTS

Moscow, Russia - 1 March 2018 - Sistema PJSFC ("Sistema" or the "Corporation") (LSE: SSA, MOEX: AFKS) a publicly traded diversified Russian holding company, announces that the Arbitration Court of the Republic of Bashkortostan (the "Court") on 1 March 2018 lifted the arrest of a 31.76% stake in MTS belonging to Sistema.

The court order was adopted by the Court on account of the Settlement Agreement concluded with PJSOC Bashneft, Rosneft and the Republic of Bashkortostan.

The Court's ruling is subject to immediate implementation, including by the Federal Bailiff Service according to the procedure established by law.

***

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

***

This announcement contains inside information. Full name and position of person making the announcement - Yury Krebs, Director, Investor Relations

***

Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Sistema's revenues for 9M 2017 reached RUB 509.6 billion and its total assets amounted to RUB 1.2 trillion as of 30 September 2017. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.com