SITRONICS Corporate Presentation

October, 2009

Some of the information in this presentation 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.

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 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 and other CIS countries, rapid technological and market change in our industries, as well as many other risks specifically related to SITRONICS and its operations.

Table of Contents2

SITRONICS at a glance 3

About company 4

Growth drivers 9

SITRONICS Telecommunications Solutions 15

SITRONICS Information Technologies 19

SITRONICS Microelectronics 23

Financial performance 27

Summary 31

Contacts 33

Appendix 34

3

SITRONICS at a Glance

3- countries which SITRONICS provides with its solutions

Headquarters in Moscow, Russia

R&D centers in Russia, Ukraine, Czech Republic, Greece

Manufacturing facilities in Russia, Czech Republic, Greece, Romania

9500 emploees

6m 2009 Sales in excess of $404 mln

One of the largest multinational hi-tech companies in Eastern Europe and CIS

The major partner of Russian Government to develop microelectronics industry

Included in the list of Russia’s strategically important companies

ABOUT COMPANY

Business Model 5

Three business directions provide complex projects to B2B and B2G

Leading Russian semiconductor manufacturer based in Zelenograd

Key products: microchips, chip modules, smart cards, RFID cards and tags, IC design

The reliable partner of major global telecom providers. Modern R&D infrastructure in the Czech Republic and Greece

Key products: next generation networks (NGN), OSS/BSS, IPTV, wireless broadband access solutions and data transmission systems

The leading provider of IT services and one of the largest system integrator in Russia and CIS

Key services and products: ERP&CRM systems implementation, IT-outsourcing, IT systems integration, Mobile Data Centers, Telematic solutions

Sales Structure, H1 2009

Sales Structure6

By Geography, H1 2009By Vertical Segment, H1 2009 By Customer, H1 2009

Focus on fast growing vertical market segments: Telecom, Financial Services, Industrial and Public

Wide geographic diversity of sales

Strong holdings with sister companies in the Sistema Group provide SITRONICS with greater confidence in the current market environment

72%

28%

AFK Sistema Affiliated Companies

Other

25%

8%

65%

2%

TelecomsFinancial InstitutionsPublic SectorIndustries

45%

55%

Russia, CIS and UkraineOther

Broad Customer Base7

More than US$ 500 million of new contracts secured since the beginning of 2009

End-to-end solutions to over 3,500 clients in 62 countries around the world

Interesting Facts8

More than 9 million people daily use RFID tickets made by SITRONICS

More than 3,500 companies around the world develop and manage their activities using SITRONICS solutions and technologies

SITRONICS solutions support more than 115 million of mobile and fixed line telecom subscribers around the world

More than 500 schools across Russia use SITRONICS technologies to drive improvements in education

GROWTH DRIVERS

Key Growth Drivers10

Joint Venture with

RUSNANO(90 nanometre microchip

production)

Partnership with Russian Government

Expansion into Oil & gas

vertical

Banking cards market

Monitoring & safety market

Expansion into fast growing markets

Partnership with Russian Government 11

Education - MIOS

Housing/Utilities - UTILIS

Telematica – NIKA

Healthcare – Angioscan

High technologies are a high priority for Russian Government

SITRONICS has own products to participate in Russian nationwide projects:

Domestic market requires local/domestic product

Financial support from Russian Government (Vnesheconombank)

Fundamentally more defensive profile as provider of long term state-sponsored infrastructural projects

Multiservice Informational-Communicational Educational Environment is an innovative solution for the education system based on interactive technologies. It embraces all basic educational processes and is installed in various configurations in over 500 schools and 10 higher educational institutions of Russia.

End-to-end solution for utility providers consisting of UTILIS Metering Suite, UTILIS Billing Suite and UTILIS CRM Suite, which together provide full support to utility providers business processes. Each suite can operate and be sold and integrated separately within an existing IS infrastructure.

GLONASS/GPS-based solution providing supervision and positioning of transport and other objects.

bio and medical technology device for measurement of human blood vessel status.

Joint Venture with RUSNANO 12

October 2009 - Investment agreement with RUSNANO to construct 90 nanometre microchip production facilities

The most advanced technology in Russia

“The launch of the 90 nanometre microchip production project is of considerable strategic importance for Russia. Nanoelectronic production in Russia plays an invaluable role in the development of the Russian high-tech sector and the country’s overall technological security.”

Anatoly Chubais, Chief Executive Officer of RUSNANO

Key products to be produced at the facility will target a number of developing industrial sectors including

Digital TV

GLONASS/ GPS navigation systems

industrial automation systems

automative electronics

high security smart cards

Revenue of Microelectronics business division is expected to rise 3x

SITRONICS to become the centre of Russian industrial ecosystem in microelectronics sector

Geographical and Vertical Expansion 13

Head office in New Delhi

Focus on Telecommunications sector, Transport industry, Educational system, State organizations & Financial institutions

Contracts for Point-to-Point Microwave equipment services, radio relay equipment, CRM and Billing Systems for Sistema Shyam TeleServices (MTS India)

Head office in Ufa

End-to end solutions to Power generation and distribution companies, Transport industry, Educational system, State organizations

3-year agreement to provide IT support for government organizations

India

Bashkortostan

Product Expansion 14

The joint venture with Paravan and acquisition a controlling stake in Network Systems will enable SITRONICS to enter a promising new market segment at low cost and to enhance product portfolio.

Paravan - engineering company specializing in the creation of engineering systems, industrial automation systems and security solutions.

Network Systems - developer of information security and encryption-based data protection programmes and software.

Monitoring & safety

Banking cards

SITRONICS won tenders to provide banking cards for Sberbank of Russia and VTB24 “ We already have a successful track record of implementing projects

with SITRONICS, and we are happy to continue our mutually beneficial cooperation.” Viktor Orlovsky, Senior Vice-President of Sberbank of Russia

“Solutions offered by SITRONICS meet our quality requirements. I am sure that joint cooperation will be successful and mutually beneficial.” Head of plastic card Department of VTB24 Elena Guseva

SITRONICS TELECOMMUNICATION SOLUTIONS

SITRONICS Telecommunication Solutions16

Russia Asia

SyriaSyria

SyriaSyria

EgyptEgypt

U.A.E.U.A.E.

MalaysiaMalaysia

Kuwait,BahraKuwait,Bahrainin

PakistanPakistan

Western and Eastern Europe

Customer Base Key Products

FORIS Charging & Billing

INTRALINK

UTILIS

Family of Digital Radio Relay System products designed to offer cost-effective solutions for long/short haul links in wireless & fixed line telephony networks for public & private organizations

Customers: MTS India (Sistema Shyam Teleservices), MTS Russia, OTE

A vendor-independent, modular solution suitable for residential, commercial and industrial customers and covers the full range of functional areas demanded by evolving municipal & provincial providers of electricity, gas, water, heat and other utilities.

Customers: Stadwerke Feldkirch (Austria), pilot projects in Thailand

Fully convergent, scalable and flexible next generation charging and billing solution designed to cover OSS/BSS operations of market leading telecom providers, challengers and greenfield start-ups

Customers: MTS, Vodafone CZ, MGTS

Partnerships with Cisco Systems, Oracle, Alcatel, Motorola, Ericsson, Agilent & HP 

SITRONICS Telecommunication Solutions 17

Revenue ($ millions)

OIBDA ($ millions)

Revenue & OIBDA Contribution (2Q 2009)

194,1154,2 140,6

105,6

283,6

155,3

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

6,0 8,112,1

28,9

-1,2

4,8

3,9%4,2%

7,8% 10,2%

-1,1%

3,4%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

OIBDA OIBDA margin

Revenues down 14% y-o-y in Q2 &16% in H1 at constant exchange rates

Q2 2009: 57% of Group revenues, H1 2009: 61%

Total volume of contracts secured since the beginning of 2009: $380 million

April 2009 – won 2 contracts to deliver, deploy and support a CRM and Billing System for Sistema Shyam TeleServices

April 2009 – won contract to supply radio relay equipment to Sistema Shyam TeleServices

June 2009 - framework agreement signed with the Bashenergo power generation and distribution company to provide UTILIS billing system software

June 2009 - new contract secured to provide Point-to-Point Microwave equipment services for Sistema Shyam TeleServices

TSTS

0%20%40%60%80%

100%

Revenue OIBDA

Telecommunication Solutions Market18

OSS/BSS: EE&MEA market, $ mln

Wireless Transmission: EE&MEA market. Eur mln

WiMAX: EE&MEA market. Eur mln

The target markets for SITRONICS are Russia and other CIS, Central and Eastern Europe, India, the Middle East, Africa, North America, Canada

The growth in targeted markets is expected to remain high

Growth points: VAS-solutions, broadband link and equipment, alternative wireless technologies (WiMAX), integrated NGN, solutions for 3G, convergent billing

4 3505 300 5 800

4 800

9%10%10%

4%

2009 2010 2011 2012

ОSS/BSS market growth rate

4 206

4 5584 940

4 395

8%4%4%

2009 2010 2011 2012

Wireless Transmission market growth rate

794

2 1001 517

2 624

91%

38%

25%

2009 2010 2011 2012

WiMAX market growth rate

Source: Gartner

Source: Heavy Reading 2008, EJL Research Data 2008 & Intracom Telecom data

Source: Maravedis WiMAX, LTE and Broadband Wireless Market Trends 2008-2013

SITRONICS INFORMATION TECHNOLOGIES

SITRONICS Information Technologies20

Customer Base Key Products

Russia

Ukraine

SITRONICS Daterium

Next generation Mobile Data Center (MDC) - a highly customised ISO container-based turn-key solution delivering a unique combination of technical characteristics

Customers: MTS Russia, Bashtek

SITRONICS NIKA

GLONASS/GPS-based fleet management solution to monitor and control transport and other objects

Сustomers: Moscow Underground, UniMilk, Tatarstan Transport Ministry

ERP & CRM systems implementation

Implementation and integration of business applications from major vendors. A strong experience and great team.

Customers: MTS , Comstar-UTS, Detskiy Mir, Eurochem

Partners: IBM, Cisco, Sun, SAS, HP, R&M

SITRONICS Information Technologies 21

Revenues ($ millions)

OIBDA ($ millions)

Revenue & OIBDA Contribution (2Q 2009)

IT

IT

0%20%40%60%80%

100%

Revenue OIBDA

39,258,5

46,219,4

132,9

47,9

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

-4,4

0,6 3,5

17,9

-2,5

11,4

-9,1%

1,5%5,9%

13,4%

-12,7%

24,6%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

OIBDA OIBDA margin

Revenues up 64% y-o-y in Q2 and up 6% in H1 at constant exchange rates

Q2 2009: 19% of Group revenues, H1 2009: 16%

Total volume of contracts secured since the beginning of 2009: $97 million

March 2009 - completed the modernization of the IT infrastructure of 39 regional outlets of the First Ukrainian International Bank

March 2009 - completed the creation of a new unified information infrastructure for the Ukrainian State Statistics organization

May 2009 – won contract to provide support to Mobile TeleSystems’ data processing centre in Siberia

June 2009 – signed agreement to supply IT infrastructure to the Government of Bashkortostan

Information Technologies Market22

Russian IT Market Size ($ millions) Ukrainian IT Market Size ($ millions)

24 484

14 175 16 73720 302

12 871

21,3%18,1%10,1%

-47,4%

2008 2009 2010 2011 2012

IT market growth rate

3 9293 144

3 792 4 5012 402

18,7%

-38,9%

30,9%20,6%

2008 2009 2010 2011 2012

IT market growth rate

The target markets for SITRONICS are Russia, Ukraine, other CIS, Central & Eastern Europe

Key markets are expected to start to recover in 2010

Focus on projects with fast and measurable returns

Growth points by segments: government orders, banking industry, oil&gas complex, utilities

Key technologies: IT outsourcing, business analysis, CRM, xaaS

Source: IDC

SITRONICS MICROELECTRONICS

SITRONICS Microelectronics24

Customer Base Key Products

Russia and Asia SIM & RUIM telecom cardsJoint venture with Giesecke & Devrient to produce and personalize smart cards launched in 2006 - 30% market share in Russia & CIS

Supplying units to Russia, Ukraine, Belarus, Uzbekistan, Kazakhstan & India

Key customers: MTS, Sistema Shyam Teleservices, Megafon, Skylink

Banking cardsEurocard/Mastercard/Visa certification in 2008

Key customers: Sberbank of Russia, VTB 24

Social cardsSITRONICS is the sole R&D contractor of the Moscow Government

Partners: STMicroelectronics, Infineon, Giesecke & Devrient, UPM

RUSNANO has approved investment of RUR 6.5 billion into SITRONICS’ project to build 90 nanometre microchip production facilities on existing “Micron” site

Transport cardsSupplying RFID tickets for the Moscow Metro, Russian Railways, and a number of transportation companies in large Russian cities with populations exceeding 1 million people, including Kazan and Nizhny Novgorod.

SITRONICS Microelectronics 25

Revenues ($ millions)

OIBDA ($ millions)

Revenue & OIBDA Contribution (2Q 2009)

MS MS

0%20%40%60%80%

100%

Revenue OIBDA91,1

61,2 57,069,8 69,6

29,0

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

11,4 22,2 10,717,4

3,912,5

16,3%

24,4%

17,4%

25,0%

13,5%21,9%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

OIBDA OIBDA margin

Revenues down 15% y/y in Q2 & down 27% in H1 at constant exchange rates

Q2 2009: 23% of Group revenues, H1 2009: 21%

Total volume of contracts secured since the beginning of 2009: $23 million

June 2009 – won contract to deliver RUIM cards to Altel in Kazakhstan

July 2009 - won contract to provide VISA Classic and VISA Platinum banking cards for VTB24

July 2009 – won contract to deliver 10 million SIM cards to Mobile TeleSystems in Russia & 5 million cards in Ukraine

September 2009 - won tenders by Sberbank of Russia to supply chip banking cards during 3 years

Microelectronics Market26

Russian RFID Market ($ millions)Russian Bank Card Market ($millions) Russian SIM Card Market ($ millions)

130110 112

108

20%

-17%

2% 2%

2008 2009 2010 2011

RFID market market growth

153 160 175

126

37%

-17%

27%

10%

2008 2009 2010 2011

SIM cards market growth rate

142 140180

110

29%27%

-23%

15%

2008 2009 2010 2011

Bank cards market growth rate

Source: PH Electronics, SITRONICS

The target markets for SITRONICS are Russia and CIS, India & SEA, Africa

Banking and SIM cards market has a strong growth potential in 2010-2011

Key drivers of growth: shift from cards with magnetic strip to smart-cards with chip; provision of additional VAS by telecom operators using SIM cards; start of the frozen 3G projects

FINANCIALPERFORMANCE

Financial Highlights H1 200928

247,1156,9

497,1283,4332,0293,6

28,1%27,3%25,4%28,4%25,8%23,2%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Revenue Gross margin

21,0

-6,9

50,417,019,6

10,8

8,5%

-4,4%

10,1%6,0%5,9%

3,7%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

OIBDA OIBDA margin

Revenue ($mln) & Gross Margin OIBDA ($ mln)

Revenue of $404.0 million

Gross margin of 27.8%

OIBDA profit of $14.1 mln

Cash flow from operations of $39.2 million

Tel

eco

mm

un

icat

ion s

olu

tio

ns

Debt Management29

We have successfully repaid, refinanced or extended approximately $300 mln of our short term debt originally falling due in 2009 since the beginning of the year

Total debt of $743 mln (non-GAAP), weighted average interest rate of 9% as of September 30

3 billion rubles of outstanding bonds have been included in the Bank of Russia’s Lombard List

Successful Cost Optimization Program30

SG&A cost reduction

45,3 35,2

56,1

38,9

1H 2008 1H 2009

Q2

Q1-30,7%

74,1

101,4

-22,4%

-27%

CAPEX reduction

We have substantially reduced our cash operating expenses, and Selling, General and Administrative expenses (SG&A) in particular.

Staff optimization program resulted in headcount reduction by 20% over the last twelve months.

We have decreased capital expenditure levels by postponing less urgent projects to 2010 and 2011.

113,9

10,3

25,2

41,2

1H 2008 1H 2009

Intangible Assets

PPE-91% 51,5

139,1

+64%

-63%

SUMMARY31

Long term scale relationships with public & private sector clients in growing industries

Expansion into new market segments

Strengthening positions in quickly developing geographical markets

Cost cutting measures improved effectiveness

Successful refinancing of debt

Contact us:

Investor Relations

+7 (495) 225-00-30

ir@sitronics.com

www.sitronics.com

APPENDIX

Comprehensive product expertise for vertical market segments35

B2B B2G

OSS/BSS

Wireline & Wireless networks

FS CDN (IPTV)

UTILIS

Wireless

Telecom Industries Financial Services Public Sector

SIM & RUIM cards

ERP, CRM

IT-outsourcing

Infrastructure solutions

NIKA

Mobile data centers

RFID solutions

Integrated circuits

RFID solutions

Smart cards

RFID solutions

Smart cards

ERP, CRM

IT-outsourcing

Infrastructure solutions

NIKA

Mobile data centers

ERP, CRM

IT-outsourcing

Infrastructure solutions

NIKA

Mobile data centers

ERP, CRM

IT-outsourcing

Infrastructure solutions

NIKA

Mobile data centers

Telecom Solutions

Microelectronic Solutions

Information Technologies

UTILIS

Wireline & Wireless networks for state needs

Shareholder Structure36

Share capital: 9 547 087 190 rubles (9 547 087 190 of ordinary shares with par value of RUR 1.00)

GDRs are listed on London Stock Exchange (IPO – Feb 2007), 1 GDR = 50 ordinary shares

Ordinary shares are listed on Russian Trading System (RTS) and Moscow Stock Exchange (MSE)

Group History

1964 – Micron factory opened in Zelenograd

1977 – Intracom Telecom established in Greece

1990 – Kvazar-Micro established in Ukraine

1993 – Strom Telecom established in Czech Republic

2002 2003 2004 2005 2006 2007 2008

Establishment of Concern Scientific Center (CSC)

Acquisition of Strom Telecom

Launch of Sitronics brand in consumer electronics market

Restructuring of CSC

Acquisition of 51% of Kvazar-Micro

2009

Consolidatoin of Strom Telecom (100%)

Consolidation of Kvant (78%)

CSC renamed SITRONICS

Deployment of FORIS billing solution for MTS

Acquisition of Intracom Telecom (51%)

Launch of RFID card production

SITRONICS IPO

Launch of IC production using 0.18 mkm technology

JV w. Geisecke & Devrient to produce smart-cards (65%)

Consolidation of 100% of Kvazar-Micro

Establishment of SITRONICS INDIA subsidiary

JV with RUSNANO to build microchip production facilities

37

Management

Sergey Aslanian

President and Chief Executive Officer

Since October 2007 – President of JSC SITRONICS.

2006-2007 - Vice-President of JSC Mobile TeleSystems, Engineering and Information Technologies.

2003 -2006 - Vice-President of JSC Mobile TeleSystems, Information Technologies.

2001-2003 - a Deputy Head of IT unit at JSC TNK-BP Management.

1997-2001 - a manger of consulting department at

PricewaterhouseCoopers.

Marina Zabolotneva

Chief Financial Officer

Since June 2008 - Vice-President of JSC SITRONICS, Finances and Investments.

2006 - 2008 – Vice-President of All-Russian JSC Inturist, Finances and Investments.

2003 - 2006 – Director of Treasury of JSC MTS.

2001- 2003 - the treasurer of JSC Coca Cola HBC Eurasia.

Pavel Pavlovsky

Head of SITRONICS Telecommunications Solutions

Since February 2008 – Head of SITRONICS Telecommunications Solutions.

2007–Vice President, Director of MTS Ukraine, MTS.

2005–2007 – Vice President, Director of Foreign Subsidiary Companies of MTS.

2003-2005 – Director of Corporate Development at MTS.

2000–2003 – independent consultant, Senior consultant at Mercer Management Consulting (London).

Gennady Krasnikov

Head of SITRONICS Microelectronic Solutions

Since September 2005 - Head of SITRONICS Microelectronics Solutions.

2003-2005 - a Chief Designer-Scientific Advisor of JSC SITRONICS.

1981- 2003 he has risen from an engineer of the Institute of Scientific Research in Molecular Electronics to General Director of Micron Plant.

38

38

Vladimir Yasinsky

Head of SITRONICS Information Technologies

Since February 2008 – Head of SITRONICS Information Technologies.

2006-2007 – First Vice-President of JSC SITRONICS, member of Administration of Kvazar-Micro Company.

1994-2006 – held a number of positions at Kvazar-Micro, including Vice-President for finance from 2004-2006.

Alexandros Stergios Manos

Director of INTRACOM TELECOM

Since January 2006 - Director of INTRACOM TELECOM.

2005-2006 - Executive Director for Telecommunications systems.

2004-2005 - Director for Corporate Marketing and international division for operators service.

2002-2004 General Director of CONKLIN CORPORATION, subsidiary of INTRACOM, located in Atlanta, USA.

P&L statement

Group statement of operations, ‘000 USD

Six months ended 30 Jun, 2009 30 Jun, 2008 % change

Revenues 404 043 625 629 -35,4%

COGS (291 653) (471 800) -38,2%

Operating expenses (123 673) (157 238) -21,3%

-R&D (11 243) (21 144) -46,8%

-SG&A (88 030) (108 128) -18,6%

-Depreciation and amortization (25 401) (33 765) -24,8%

Operating (loss) / income (11 283) (3 409) 231,0%

OIBDA 14 118 30 356 -53,5%

Loss before income tax (41 300) (14 231) 190,2%

(Loss)/ Income from discontinued operations (26 154) 14 255 -283,5%

Net loss (68 488) (13 699) 399,9%

Net loss / (income) attributable to the noncontrolling interest

1 579 (6 472) -124,4%

NET LOSS ATTRIBUTABLE TO SITRONICS (66 909) (20 171) 231,7%

39

Cash Flow

Group cash flow statement, ‘000 USD

Six months ended 30 Jun, 2009 30 Jun, 2008 % change

Net cash provided by operating activities 39 158 103 -

Net cash used in investing activities (69 230) (226 291) -

Net cash provided by financing activities 79 073 136 683 -42,2%

Effects of exchange rate changes on cash and cash equivalents

253 7 727 -96,7%

Increase / (Decrease) in cash and cash equivalents

49 254 (81 778) -

Cash and cash equivalents at the beginning of the period

125 695 185 486 -32,2%

Cash and cash equivalents at the end of the period

174 949 103 708 68,7%

40

Balance Sheet

Group balance sheet, ‘000 USD

30 Jun, 2009 31 Dec, 2008 % change

Total assets 1 844 788 2 034 982 -9,3%

-Cash and cash equivalents 174 949 116 720 49,9%

-Accounts receivable, net 450 414 566 326 -20,5%

-Inventories, net 176 351 181 763 -3,0%

Total debt 809 945 726 209 11.5%

-Short-term debt 612 139 526 493 16,3%

-Long-term debt 197 806 199 716 -1.0%

Net debt 634 996 609 489 4.2%

Shareholders' equity 572 423 654 877 -12,6%

41