MOSCOW, Russia - December 4, 2007 - JSC SITRONICS ("Sitronics" or "The Company") (LSE: SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS, with a growing presence in other EEMEA emerging markets, today announced that it will supply 3G equipment and services to Mobile TeleSystems ("MTS") networks in Russia and the CIS in joint partnership with Ericsson, the leading telecommunications equipment vendor. Ericsson will act as a prime contractor to MTS and SITRONICS will serve as Ericsson's subcontractor.

In accordance with the partnership agreement, Ericsson and SITRONICS will supply UMTS technology to MTS. Ericsson radio access, as well as switching and network management systems jointly provided by SITRONICS and Ericsson, will be used in the MTS networks. According to the terms of the agreement, both companies will be engaged in system integration, service support and additional development of subscriber services. The project is expected to be completed in the beginning of 2009.

Sergey Aslanyan, President and Chief Executive Officer of SITRONICS, commented: "We believe that the Russian telecommunications market is about to experience a drastic transformation as new technologies will change the way people communicate. Accuracy, high quality of service and user-oriented solutions are prerequisites for the success of network operators. We expect our partnership with Ericsson, the leading vendor of telecommunications solutions, to give MTS a significant competitive advantage in its markets."

Bjorn Hemstad, Head of Central and Eastern Europe, Middle East and Africa (CEMA) at Ericsson, added: "We are confident that our cooperation with SITRONICS, a trusted partner of international companies, will allow us to realize the full potential of information communication technologies for the benefit of all-communicating society."

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Find more: www.ericsson.com/ru

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.

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.

For the six months ended June 30, 2007, SITRONICS' revenues were US$ 638.3 million. As of 30 June 2007, SITRONICS had total assets of US$ 1.7 billion. SITRONICS is majority owned by Sistema, 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.