OREANDA-NEWS. Sistema JSFC (“Sistema” or the “Company”, together with its subsidiaries, “the Group”) (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, announces its consolidated US GAAP financial results for the fourth quarter and the full year ended December 31, 2013.

FULL YEAR HIGHLIGHTS

Consolidated revenues up 5.9%YoY to USD 35.9 billion

Adjusted OIBDA up 5.8% YoY to USD 8.9 billion, with an adjusted OIBDA margin of 24.8%

Adjusted net income attributable to the Group up 11.1% YoY to USD 2.0 billion

Consolidated net income attributable to the Group up 138.6% YoY to USD 2.3 billion

Net debt at the Corporate Holding level amounted to USD 296.8 million as at December 31, 2013

Cash position at the Corporate Holding level amounted to USD 571 million, liquid investments in financial instruments amounted to USD 707 million as at December 31, 2013

FOURTH QUARTER HIGHLIGHTS

Revenues up 4.6% YoY to USD 9.9 billion

Adjusted OIBDA up 9.9% YoY to USD 2.3 billion, with an adjusted OIBDA margin of 23.1%

Adjusted net income attributable to the Group up 72.5% YoY to USD 627.3 million

Consolidated net income attributable to the Group down 73.5% YoY to USD 47.7 million due to recognised certain one-off items

KEY CORPORATE HIGHLIGHTS FOR 2013

Acquisition of a 51% stake in CJSC Business Nedvizhimost from CJSC MGTS-Nedvizhimost, for RUB 3.2 billion.

Announced reorganisation plan to eliminate cross ownership in Bashneft by restructuring Sistema's subsidiary Sistema-Invest.

Acquisition of a 100% stake in LLC Bashneft-Services Assets (BNSA) from Bashneft for a total cash consideration of RUB 4.1 billion.

Acquisition of a 98% stake in OJSC United Petrochemical Company (UPC) from Bashneft for RUB 6.2 billion, and a joint venture agreement signed by UPC with a subsidiary of Alpek, S.A.B. de C.V. for the construction of an integrated purified terephthalic acid - polyethylene terephthalate plant in Ufa, Bashkortostan.

Sale of a 49% stake in OJSC Oil and Gas Company RussNeft, for a total cash consideration of USD 1.2 billion.

Reorganisation of the Group's transportation assets: sale of 70% and 15% of Sistema's shares in SG-trans to Financial Alliance and Unirail for RUB 12.0 billion and RUB 2.5 billion, respectively. Sistema retained 100% of SG-trading.

Approved a new motivational programme for Sistema's portfolios and functional divisions, based on cash generation and share price performance principles.

Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented:

“We are pleased to report excellent results after another strong year. Our numbers were largely driven by solid operating performance across our entire investment base and the consistent execution of our strategy. The Group's revenues exceeded RUB 1.1 trillion in 2013, which represents an 8.4% year-on-year annual growth in rouble terms.

Our cash position was substantially strengthened with proceeds from dividends amounting to USD 1.5 billion, as well as the divestment of RussNeft and cash back from the restructuring of our transportation business. At the end of the year, we conducted the reorganisation of Sistema Invest, which eliminated the cross shareholding at Bashneft and optimised the ownership structure of Sistema's petrochemical and power grid assets. As part of our efforts to realise hidden value, we acquired United Petrochemical Company, and completed the purchase of Bashneft-Services Assets, both of which have exciting prospects and turnaround potential as stand-alone businesses. Other key milestones for 2013 include the resolution of SSTL's licensing issues by repositioning the company into a more focused data operator with a better spectrum and lower capital requirements.

In 2014, our focus will remain on balanced approach between monetising certain investments, sharpening the strategic and operational focus of our businesses and enhancing our portfolio through M&A. We are in an excellent financial position to deliver on all our promises, withstand any macroeconomic volatility and wisely take advantage of attractive asset opportunities when they arise.”