SISTEMA-HALS PRESIDENT APPOINTMENT 

MOSCOW, RUSSIA – October 12, 2009 – Sistema-Hals (HALS),a leading diversified company in the Russian and CIS real estate market, today announces that the Board of Directors voted for appointment of Andrey Nesterenko to the post of Sistema-Hals President since October 14, 2009.

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Andrey Nesterenko

Born in 1976 in Moscow. 

In 1994 Mr Nesterenko graduated from St.Charles College in London and in 1997 - from Moscow Consumer Cooperation University major in economics; ACCA degree.

2003 - 2005 - Chief Financial Officer with Russian office of Bunge Ltd.

2005 - 2007 - Vice-President for Finance at DIXI Group, where he organized financial unit and general business processes, attracted financing, including the IPO of the company.

2007 - 2009 - First Vice-President for Finance, General Director with Capital Group, where he managed commercial real estate division, was engaged in private placement preparation, attracted financing and restructured debt. 

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Sistema-Hals ("the Company") is a leading diversified company in the Russian and CIS real estate market. The Company was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The Company's shares are also listed on the Moscow Interbank Currency Exchange and the Moscow Stock Exchange and in the Russian Trading System Stock Exchange.

Starting operations in 1994, Sistema-Hals has successfully completed about 40 projects with a total area in the region of 340,000 square metres, including the headquarters of DaimlerChrysler, the Hals Tower office building, the headquarters of Trubnaya Metallurgical Company, a hotel for the MaMaison chain (Orco Property Group), residential projects in Kuntsevo district.

Sistema-Hals has assembled a balanced and diversified portfolio of assets in fast-growing sectors of the market. The Company's strategy is focused on building Class A and B office space, mixed-use retail and office complexes, business-class residential buildings.

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The information in the press release may contain forward-looking statements regarding future events or the future financial performance of Sistema-Hals. 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. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date thereof or to reflect the occurrence of unanticipated events.