*http://www.interfax.com/3/284298/news.aspx
**Sistema capitalization to reach $25 bln by 2008 (Part 2) MOSCOW. June 19 (Interfax) -*Sistema (RTS: AFKS), the largest private sector consumer services company in Russia and the CIS, will see its capitalization hit $25 billion by 2008, Alexander Goncharuk, the company's president, told reporters on Tuesday in Moscow. "Around a year," he said in answer to a question on how much time is needed for the company's capitalization to hit $25 billion. "I'm an unrestrained optimist, but am a cautious optimist in this situation," Goncharuk said. The holding's capitalization depends on "increasing that stake in Sistema's business that is not public," he said. There are three fundamental reasons for a discount in the value of Sistema shares, Goncharuk said. First, the holding offers its shareholders the chance to take part in its capital directly, bypassing Sistema. Second, the share of non-public companies in Sistema's business was very low until recently, he said. "Sistema is now developing in four main business areas [non-public companies], which will lead to a growth in its share prices soon," Goncharuk said. The third reason is speculation in the press regarding the division of Sistema's telecommunication assets, he said. rm [Non-text portions of this message have been removed]
