Sistema closes book on RUB 5 billion bond

Moscow, Russia - 7 October 2015 - Sistema JSFC ("Sistema" or the "Company") (LSE: SSA) today announces the successful closing of the bid book on October 06, 2015 for its Series 001R-01 exchange traded bonds with a total par value of RUB 5 billion.

The bonds mature in 10 years, bondholders have the right to redeem their bonds at the point of expiration, 3 years from the date the bonds were placed. The coupon was set at 12.50% per annum.

Vsevolod Rozanov, Senior Vice President of Sistema, said: "We originally targeted a coupon in the 12.90%-13.25% range. Thanks to significant investor interest we were able to narrow the range twice to 12.50%-12.75% and close the book at the lower end, setting the coupon at 12.50%. This once again underscores the attractiveness of Sistema's securities and confidence in our strategy and financial position. The funds will be used for investments and general corporate purposes."

Forty-two bids were received from potential investors during the book-building period. Demand totalled more than RUB 10 billion.

Gazprombank and Rosbank acted as the Co-Lead Managers of the issue. MTS Bank and East West United Bank SA acted as Co-Managers and Gazprombank as a placement agent. The bonds will be placed on the MICEX Stock Exchange on 13 October 2015.

***

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

Sistema is a publicly-traded diversified holding company in Russia and the CIS, which invests in and 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 164.0 billion for the second quarter of 2015, and total assets of RUB 1,175.7 billion as at June 30, 2015. 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

The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.

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 entered into by our subsidiaries 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.