OREANDA-NEWS. On July 10, 2007 Sistema (the "Group") (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, announced its unaudited consolidated US GAAP financial results for the three months ended March 31, 2007, reported the press-centre of Sistema.

 FIRST QUARTER HIGHLIGHTS

Consolidated revenues up 44% year on year to US$ 2,7 billion

OIBDA up 58% year on year to US$ 1,1 billion with increased margin of 40,5%

Operating income up 87% year on year to US$ 728,5 million with increased margin of 27%

Net income up more than five fold year on year to US$ 745,9 million

US$ 356,4 million raised through SITRONICS initial public offering in February 2007

Completion of sale of 49,2% stake in ROSNO insurance joint venture for US$ 750 million in February 2007

Alexander Goncharuk, President and Chief Executive Officer, commented: "The 44% revenue growth generated in the first quarter of 2007 demonstrates our solid performance across all business lines, and particularly in the telecommunications segment. The non-telecommunications businesses now account for almost a quarter of total revenues. We have successfully combined this growth with a more than five fold year on year increase in net income, which reflects our focus on maximizing shareholder value creation through improved operational performance and selective asset realizations. Specifically, we have been able to realize our investment in ROSNO through the sale of our 49,2% stake for US$ 750 million. The IPO of SITRONICS was another important milestone in the development of our Group. We are well positioned for continued growth in all of our business areas and remain focused on enhancing our competitive position and profitability in each segment."