Today, Concern SITRONICS, the technology arm of SISTEMA and INTRACOM HOLDINGS announced their final agreement for the acquisition by Concern SITRONICS of a 51% stake in INTRACOM TELECOM for EUR 120 million. The announcement took place at a press conference in Athens. The stocks transfer is expected to take place by June 30, 2006.

"This is an exciting day for the history of INTRACOM HOLDINGS Group", emphasized Mr. Socrates P. Kokkalis, Chairman and CEO. "This deal is about international empowerment. Both Groups will become a new dynamic leader in the region of Central and Eastern Europe, Middle East and Africa. We create economies of scale and achieve a strong position to face international competition. We reach new emerging markets of more than 200 million people, where telecommunication infrastructure is most needed and large inve stments are foreseen for the next years. The Groups expect INTRACOM TELECOM sales ιn Russia and Commonwealth of Independent States (C.I.S.) to achieve the amount of business of at least ? 300 million within three years and the company will become one of the market leaders in telecommunications equipment and related services."

SISTEMA Chairman, Mr. Vladimir Evtushenkov stated: "SITRONICS and INTRACOM HOLDINGS manifest their will to strongly support INTRACOM TELECOM business development on their respective markets of presence. Therefore, the parties intend to render all necessary support to INTRACOM TELECOM in order to promote the company's products in the territory of Russia and the C.I.S. The cooperation of both Groups creates important competitive advantages towards international competition."

"SITRONICS has a full scale of high quality technological products and services and can contribute to the development of the Group's companies further than Eastern Europe", said Mr. Evgeny Utkin, Chief Executive of SITRONICS. "STROM, as well as SITRONICS, can leverage not only the know-how of INTRACOM TELECOM, but also promote it through the channels of their own products, in markets that it did not have access up to now. At the same time, we can work together on R&D, leveraging our scientists' potential and our state-of-the-art labs."

INTRACOM TELECOM Managing Director, Mr. Alexandros Manos, said: "A new market opens for all our products. Our investments in R&D, human resources and development programs will be doubled and we will strengthen our international presence. INTRACOM TELECOM system integration services and know-how offered in the markets of Central and Eastern Europe, Middle East and Africa will be further developed and leveraged by SITRONICS."

INTRACOM TELECOM is a fully owned subsidiary of INTRACOM HOLDINGS providing integrated telecommunications solutions and services in the region of Central and Eastern Europe, Middle East and Africa. INTRACOM TELECOM, through its R&D activity, has developed and manufactured a full portfolio of advanced technological products in the areas of broadband fixed and wireless access and transmission systems, as well as content delivery systems (IPTV, triple-play).

SITRONICS will integrate the company into its Telecom Solutions Division, whose primary focus is currently on switching equipment, billing systems and NGN, aiming to achieve full scale synergies from INTRACOM TELECOM's complementary product lines, system integration capabilities and customer base.

For further information, please visit www.sistema.com, www.sitronics.com, www.intracom.com or contact:
SITRONICS Public Relations
Elena Sanarova
Tel: +7 495 225 0030
sanarova@sitronics.com
SISTEMA Investor Relations
Alexei Kurach
Tel: +7 495 629 2741
kurach@sistema.ru
INTRACOM HOLDINGS
Christina Geronicola
Communications Director
Tel: +30-210-667 4747
christina.geronicola@intracom.com
INTRACOM HOLDINGS
Vivian Tsamadou
Media Relations Manager
Tel: +30-210-667-7121
vtsa@intracom.com

About SISTEMA
SISTEMA is the largest private sector consumer services company in Russia and the CIS, with over 50 million customers. SISTEMA portfolio includes market-leading businesses in selected service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media. Founded in 1993, the company reported in 2005 revenues of US$ 7.6 billion and total assets of US$ 14 billion. SISTEMA's shares are listed under the symbol "SSA" on the London Stock Exchange, under the symbol "AFKS" on the Russian Trading System (RTS), and under the symbol "SIST" on the Moscow Stock Exchange (MSE).

About CONCERN SITRONICS
Concern SITRONICS, headquartered in Moscow, Russia, is the technology arm of SISTEMA, active in four core segments: Telecom equipment manufacturing and software development (Telecom Solutions), Information Technologies, Microelectronic Components, Consumer Electronics. Founded in 1997, the company reported in 2005 revenues of US$ 954.9 mln and total assets US$ 567.8 mln. SITRONICS has production facilities in Moscow, Kiev, Prague and several other East European cities. SITRONICS has 6,700 employees. Its p roducts are sold in Western and Easter Europe, Russia and CIS, North America, Middle East and South-East Asia.

About INTRACOM HOLDINGS
INTRACOM SA was founded in 1977, has been listed on the Athens Stock Exchange since 1990, and is included in the FTSE/ASE-20 LargeCap index. On December 2005, the Group reorganized, creating INTRACOM HOLDINGS, one of the largest Greek multinational holding Groups, active in telecommunications, e-government, banking and enterprise, defense electronic systems, and construction. The Group's major subsidiaries are: INTRACOM TELECOM, INTRACOM DEFENSE ELECTRONICS, INTRACOM IT SERVICES, INTRAKAT and H.O.L. INTRAC OM HOLDINGS Group has 5,700 employees, exports to 60 countries, and operates subsidiaries in 19 countries.

About INTRACOM TELECOM
INTRACOM TELECOM is a subsidiary of INTRACOM HOLDINGS. The company is a leading telecommunications equipment vendor and solutions provider for fixed and mobile operators. The company delivers end-to-end future proof solutions, implements large-scale turn-key projects and provides a wide range of professional and outsourcing services to telecommunications operators. INTRACOM TELECOM operates subsidiaries in 12 countries and, together with them, is active in more than 50 countries, strategically aiming in th e area of Central and Eastern Europe, Middle East and North Africa.