MTS Launches 3G in Moscow

26 May 2009

Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces the launch of the first phase of its 3G network in Moscow. The first indoor network was launched in Expocentre, one of the largest exhibition centers in Eastern Europe.

MTS has covered the whole Expocentre exhibition space with the next-generation network, providing customers with faster data download speeds of up to 3.6 Mbit/s using the HSPA technology.

MTS is planning to launch additional 3G networks in 35 largest business and shopping centers in Moscow in 2009, including the Domodedovo International Airport. MTS will also launch indoor 3G networks in the offices of the largest corporations based in Moscow. 3G services will also become available in several cities in the Moscow region, including Noginsk and Orekhovo-Zuyevo.

MTS has also received permission to deploy 3G networks in the Moscow metro. The first test network will be launched on the Sokolnicheskaya line.

Development of 3G networks is a cornerstone of MTS’ strategy aimed at providing mobile broadband in the CIS. As these markets demonstrate relatively low levels of fixed-line penetration and historic underinvestment in infrastructure, MTS views its networks as an ideal vehicle to meet the growing broadband Internet needs of its subscribers through attractive data products and services.

MTS already operates 3G networks in Russia, Uzbekistan and Armenia and offers high-speed data access through its proprietary CDMA-450 network in Ukraine.

***

For further information, please contact:
Mobile TeleSystems, Moscow
Investor Relations
Tel: +7 495 223 2025
E-mail: ir@mts.ru

***

Mobile TeleSystems OJSC (‚MTS‘) is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 93.03 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS’ Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS can be found on MTS’ website at www.mtsgsm.com.

***

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 MTS, as defined in the safe harbor provisions of the U. S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as ‚expect,‘ ‚believe,‘ ‚anticipate,‘ ‚estimate,‘ ‚intend,‘ ‚will,‘ ‚could,‘ ‚may‘ or ‚might,‘ and 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. We refer you to the documents MTS files from time to time with the U. S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned ‚Risk Factors‘ that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.

Contact us:

+ 7 495 223 20 25 ir@mts.ru