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Wednesday, 31 January 2008

SITRONICS Announces New Product Strategy

Moscow, Barcelona, February 12, 2008 - JSC SITRONICS ("SITRONICS" or "The Company") (LSE:SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS, announced its new Product Strategy of the Telecom Solutions business division at the "Mobile World Congress 2008", the largest international exhibition which takes place in Barcelona, Spain.

The main goals of the new SITRONICS Telecom Solutions Product Strategy are to develop high-margin products for rapidly developing market segments, to effectively employ partnerships for the development and promotion of complex solutions, and to implement a centralized quality procedure management in its product portfolio.

Within the framework of the new SITRONICS Telecom Solutions Product Strategy, the Company aims to make major investments in the market segments with an average annual growth rate no less than 15%. SITRONICS TS is already focusing on R&D, investing approximately 10% of its annual revenue - the industry norm.

In the near future, SITRONICS plans to further enhance its presence on perspective markets, such as the IMS, WiMAX-mobile (802.16e) and to enter the new 3G Indoor Solutions market.

The new SITRONICS Product Portfolio will comprise Broadband Wireless Access, Next Generation (NGN) & Content Delivery Network solutions, as well as the Company's traditional OSS/BSS solutions. This new strategy will allow the Company to dramatically increase its market share in Russia & the EMEA region.

Mikhail Minkovsky, SITRONICS, CTO, commented: "We are working hard to develop new products and solutions for the Telecom business division. Our Product Portfolio is based on our own products created by specialists in Greece, Czech and Russia; partnerships with leading high-tech companies - both in Russia and abroad; and the acquirement of perspective projects through the Coral/SISTEMA Strategic Fund. Product portfolio optimization, new developments and increasing synergy among the Companies of the Telecom business division will lead to our competitiveness growth.

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

Irina Lanina
Vice-President
of Corporate Communications
Tel.: +7 495 225 0030
lanina@sitronics.com

Sergei Filippov
Head of Press Service
Tel.: +7 495 225 0030
filippov@sitronics.com

SITRONICS is a leading provider of telecommunication solutions, including software, equipment and systems integration, IT solutions and microelectronic solutions in Russia and the Commonwealth of Independent States with a strong presence in Central and Eastern Europe and a growing presence in the Middle East and Africa.

SITRONICS serves over 3,500 clients, maintains offices in 32 countries and exports its products and services to more than 60 countries. SITRONICS has over 10,000 employees of whom approximately 4,500 are involved in research and development.

SITRONICS' key Telecommunication Solutions operations are based in Prague, Czech Republic and Athens, Greece and Moscow, Russia, while the company's IT Solutions and Microelectronic Solutions divisions are based in Kiev, Ukraine and Zelenograd, Russia, respectively.

SITRONICS generated revenues of US$ 1,014.6 million for the nine months ended September 30, 2007 and had total assets of US$ 1.78 billion at the end of the period. SITRONICS is majority-owned by Sistema, which is the largest diversified holding company in Russia and CIS.

SITRONICS has developed strategic alliances in its home markets with Cisco Systems, STMicroelectronics, Infineon and Giesecke & Devrient in relation to certain products and services. SITRONICS has vendor relationships with Siemens, Ericsson, Motorola, ORACLE, Intel, Sun Microsystems and Microsoft. Key customers include Sistema group companies, such as MTS, Comstar UTS and MTT, and also OTE, Cosmote, Vodafone, Ericsson and TCL.

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 SITRONICS. 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. These statements are only predictions and actual events or results may differ materially. We do not intend to or undertake any obligation 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, and other factors specifically related to SITRONICS and its operations.

This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of SITRONICS, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of SITRONICS.