AFK Sistema : Information on a transaction under the MTS share buyback programme

03/10/2018

Information on a transaction under the MTS share buyback programme

Moscow, 03 October2018 - Sistema PJSFC (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company, announces that its subsidiary Sistema Finance S.A. sold 9,343,813 ordinary shares of PJSC MTS (hereinafter, 'MTS') to a subsidiary of MTS, LLC Bastion ('the Purchaser'), as part of the MTS share buyback programme in the amount up to RUB 30.0 bn, which was approved by the Board of Directors of MTS in June 2018 and will be effective until July 2020 ('the Programme'). The amount of the transaction was approximately RUB 2.47 bn.

In accordance with the terms of the Programme, the number of shares for the purpose of the transaction was calculated based on the number of ordinary shares and American depositary shares of MTS purchased by the Purchaser in the open market in September 2018 in proportion to Sistema Group's effective equity stake in MTS.

As a result of implementation of the Programme in September 2018, Sistema Group's effective stake in MTS remained unchanged at 50.0053%.

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

Investor Relations Nikolai Minashin Tel: [phone] [e-mail]

Public Relations Sergey Kopytov Tel.: [phone] [e-mail]

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This announcement contains inside information. Full name and position of person making the announcement - Nikolai Minashin, Director, Investor Relations

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Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Its revenue in 2016 reached RUB 697.7 billion; its total assets equalled RUB 1.1 trillion as of 31 December 2016. Sistema's global depositary receipts are listed under the symbol 'SSA' on the London Stock Exchange. Sistema's ordinary shares are listed under the 'AFKS' ticker on the Moscow Exchange. Website: www.sistema.ru