18.12.2007    INTRACOM TELECOM DELIVERS FS|CDN™ IPTV SOLUTION

MOSCOW, Russia - December 18, 2007 - JSC SITRONICS ("SITRONICS" or "The Company") (LSE: SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS, today announced that a part of its INTRACOM TELECOM subsidiary, the US-based Conklin-INTRACOM, is delivering its fs|cdn^TM MPEG-4 IPTV Solution to Bruce Telecom, a provider of telecommunication services in Canada.

fs|cdn is an integrated IPTV solution allowing service providers to deliver linear and on-demand TV, chat, email, messaging and next generation interactive services. fs|cdn^TM MPEG-4 IPTV Delivery Solution provided by Conklin-INTRACOM was selected to serve the lakeside communities of Kincardine, Port Elgin, Tiverton and Southampton in Canada. MPEG-4 compression technology is being utilized to reach customers served over copper, in addition to those served by Bruce's fiber-to-the-home network. A mix of high definition and standard definition video broadcast, music channels and video-on-demand will be offered to complement existing services.

In addition to providing the entire service range supported by IPTV solutions, the fs|cdn^TM professional team will provide supplemental system integration services to accelerate service delivery. The new video service is expected to be available to customers in early 2008.

Mr. Alexandros Manos, Managing Director of INTRACOM TELECOM, commented:  "This is another important cooperation that solidifies our IPTV positioning in a highly competitive market, such as North America. This project further enhances our growing list of successful IPTV implementations world-wide, adding more value to our global experience and clearly demonstrating our technical capabilities and leadership in providing world-class products and turn-key solutions. We look forward to serving Bruce Telecom and contributing to our joint success."

Mr. Hans Nilsson, President and CEO of Bruce Telecom, added: "Bruce Telecom is entering into the video era with a strong partner, such as INTRACOM TELECOM Group. We have selected the fs|cdn solution due to its visionary architecture and ability to easily incorporate new content models. We are confident that this solution will assist us in providing high-quality IPTV services to our clients."

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About Bruce Telecom

Bruce Municipal Telephone System was established in 1911 linking local farm families with each other as well as nearby towns and villages. BMTS's Internet service was established in 1994 providing Internet to much of Grey-Bruce, Huron-Perth and Simcoe Counties. High Speed DSL Internet service (also known as CHEETAH) made its introduction in 2000. In September 2005, BMTS/BMI underwent a name change and became Bruce Telecom.

Today, the Bruce County lakeside communities of Kincardine, Paisley, Port Elgin and Tiverton enjoy the most recent technological advances in their communications services through Bruce Telecom. They are committed to providing innovative communication solutions with professional customer support. In October, 2006, Bruce Telecom was named "Business of the Year" by the Owen Sound Chamber of Commerce and "#1 Internet provider" by the Sun Times.

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.

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.