OREANDA-NEWS. August 16, 2007. Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that it has completed the acquisition of a 20% stake in Dalcombank, a commercial bank based in the Far East of Russia, for a total cash consideration of US$ 8.3 million.

Founded in 1988, Dalcombank provides banking services across a wide retail network in 29 cities of Russia's Far East region, including its largest cities: Khabarovsk, Vladivostok, Yakutsk, Blagoveschensk, Birobidjan, Komsomolsk-on-Amur and Irkutsk. Dalcombank reported revenues of RUR 1.6 billion (approximately US$ 61.3 million) in the first half of 2007 and total assets of RUR 14.6 billion (approximately US$ 566.1 million) as at June 30, 2007.

Alexander Goncharuk, President and CEO of Sistema, commented: "Entering the Far East region will allow us to expand the banking network of the Sistema Group, which now comprises the Moscow Bank for Reconstruction and Development (MBRD) and East-West United Bank, and enable us to become a national player in the Russian banking sector. This transaction will both strengthen our local market position in several regions of the Far East and substantially broaden our customer base. Our expansion in this region reflects our ambitious growth strategy in the Russian banking sector and our commitment to developing the regional economy."