31.01.2008    SITRONICS Signs Contracts With MTS-Ukraine For a Total Value of over US$ 12 Million

MOSCOW--Jan. 31, 2008--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 its telecommunications solutions business unit, SITRONICS Telecom Solutions, Czech Republic ("SITRONICS TS, CZ"), has signed two contracts with MTS-Ukraine (formerly UMC), one of the leading Ukrainian mobile operators, which provides services to nearly 20 million users. The total value of the contracts is approximately US$
12.4 million.

Under the terms of these contracts, SITRONICS TS, CZ will provide the equipment for MTS-Ukraine's two new mobile transit exchanges and upgrade to boost the overall capacity four existing exchanges utilizing GMSC technology (Gateway Mobile Switching Centre). The new system is expected to be deployed in the middle of 2008.

SITRONICS TS, CZ currently provides the MTS Group with its MEDIO range of products (digital switching platforms), as well as with FORIS NG (an OSS/BSS solution for telecommunications operators) and TENNET (a Next Generation Network solution).

Mikhail Minkovsky, Chief Technology Officer of SITRONICS,
commented: "We continue to expand our cooperation with MTS-Ukraine, a subsidiary of the largest mobile operator in Russia and the CIS. These new agreements demonstrate the high quality and competitiveness of our products and solutions. We are pleased to once again be able to deliver our services to the MTS Group as its telecom equipment provider."

Andrew Dubovskov, General Director of MTS-Ukraine, added:
"MTS-Ukraine was the first mobile operator in Ukraine. We have been working on the technical improvement of our network and connection quality for over 15 years. MTS-Ukraine has a number of joint projects with SITRONICS and we are pleased to have an opportunity to expand this cooperation."

Notes to Editors

MTS-Ukraine uses GMSC transit exchanges in order to optimize internal traffic routing inside its network, collect traffic for service platforms and to connect to external network operators. The GMSC's embedded STP functionality is also used to optimise the SS7 signalling network. The deployment and use of technologically-dedicated transit exchanges is more cost-effective than the use of traditional mobile exchanges.

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

Alexey Tischenko Shared Value Limited
Head of Capital Markets Investor Relations
Tel: +7 495 221 4943 Larisa Kogut-Millings
ir@sitronics.com Tel: +44 (0) 20 7321 5037
sitronics@sharedvalue.net

About MTS

Mobile TeleSystems OJSC (MTS) is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 81.97 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million.

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.

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.

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