Settlement Agreement is fully performed

Settlement Agreement between Sistema, Bashneft and Rosneft fully performed

Moscow, Russia - 21 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") satisfied a motion by Bashneft, Rosneft and the Ministry of Land and Property Relations of the Republic of Bashkortostan regarding the withdrawal of claims totalling RUB 131.6 billion that were filed against Sistema and Sistema-Invest in December 2017, and terminated the proceedings on the case.

The Corporation and Sistema-Invest have also withdrawn previously filed claims as per the terms of the Settlement Agreement between Sistema, Sistema-Invest, Bashneft, Rosneft and the Ministry of Land and Property Relations of the Republic of Bashkortostan (the "Settlement Agreement").

The Settlement Agreement has thus been fully and duly performed.

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

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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 1.1 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