JSC SITRONICS (“SITRONICS” or “The Company”) (LSE:SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS, today announced decisions made at the Annual General Meeting of its shareholders (“AGM”) on June 26, 2008.

The AGM approved the Company’s annual report and annual financial statements for 2007, as well as the allocation of 5% of the Company’s net profit to set up a reserve fund, the rest of the net profit is to remain at the Company’s disposition. The AGM approved the proposal of the Board of Directors not to pay an annual dividend for the twelve months ended December 31, 2007.

The shareholders approved the compensation of the expenses incurred by the members of the Board of Directors in relation to carrying out their directorship duties. Deloitte & Touche CIS and Paliy & Sons were appointed as auditors for 2008.

The shareholders approved the election of the members of its Board of Directors as follows:

• Yuval Almog – Founder and Senior Managing Director, Coral Capital Management
• Sergey Aslanian – President, SITRONICS
• Igor Busarov – Deputy Director of Finance Unit, Head of Active Operations of the Finance and Investment Division, Sistema
• Dmitry Gaev – Head of the Moscow Subway
• Rudolf Lamprecht – Executive Advisor to the CEO of Siemens AG
• Evgeny Madorsky – Director of the Corporate Development Unit of the Strategy and Development Division, Sistema
• Denis Muratov – Vice President, Head of Innovations and Science, Sistema
• Evgeny Utkin – Member of the Board of Directors of NIIME & Micron and SITRONICS Nanotechnology, Member of the Management Board of Kvazar-Micro
• Nikhad Hurem – First Vice President for New Products and Technology Development, SITRONICS

The shareholders approved the election of the members of the Company’s Audit Committee as follows:

• Vasily Platoshin – Chief Accountant, Sistema
• Artyom Popov – Executive Director of Finance Planning and Budget Unit of the Finance and Investment Division, Sistema
• Mikhail Tokun - Head of the Expertise and Methodology Directorate of Sistema’s Internal Control and Audit Department

In addition, the AGM approved the updated internal Company Regulations: the Regulation on the Board of Directors of SITRONICS and the Regulation on the Management Board of SITRONICS.

For further information, please visit www.sitronics.com

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 30 countries and exports its products and services to more than 60 countries. SITRONICS has over 10,000 employees of whom approximately 4,600 are involved in research and development.

SITRONICS’ key Telecommunication Solutions operations are based in Prague, Czech Republic and Athens, Greece, while the company’s IT Solutions and Microelectronic Solutions divisions are based in Kiev, Ukraine and Zelenograd, Russia respectively.

For the three months ended March 31, 2008, SITRONICS’ revenues were US$ 310 million. As of 31 March 2008, SITRONICS had total assets of US$ 1.97 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, Arcelor Mittal (formerly Mittal Steel) 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 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.