MTS and Microsoft to Work Together to Deliver Mobile Services across Russia and CIS

Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, and Microsoft Corp today announced their co-operation to deliver new mobile communications services for MTS customers. The collaboration is aimed at extending the range of products in MTS’ market-leading portfolio of value-added services.

Through this agreement, MTS and Microsoft will develop a road map for delivering innovative services to satisfy rising demand for data products and services throughout MTS’ markets. Initially, through MTS Connect, the company’s tariff class dedicated to data transfer and mobile Internet access, MTS and Microsoft plan to introduce Windows Vista-based notebook PCs, which offer built-in mobile broadband access, and make available to customers through a subscription payment model. At prices substantially less than current laptops with embedded 3G technologies, MTS will bring to market a best-in-class proposition featuring an innovative laptop design, a variety of tariff plans to address a wide array of users, customer service and support, and equipment fully tested and certified to meet MTS customers’ high expectations. The subscription PC program is expected to be available to MTS consumers in June 2008.

“Our engagement with Microsoft allows us to fulfill our brand promise of delivering more for our customers,” said Cynthia Gordon, Vice President and Chief Marketing Officer for MTS. “Customers of all types will be able to choose a bundled mobile broadband service at a price that fits their budget. The introduction of Microsoft’s innovative products will enable our customers to further create for themselves a unique customer experience.”

“Our co-operation with MTS represents a mutual desire  to deliver the best in mobile services, whether that’s business users demanding mobile data services or consumers looking for the latest in connected communications and entertainment,” said Martha Béjar, corporate vice president for the Communications Sector at Microsoft. “The breadth of operator-enabled services that Microsoft has available today opens up a huge opportunity for MTS to deliver exciting experiences to their subscribers. And for Microsoft, MTS represents a significant channel to market for our software and services to give more people access to better mobile technology.”

MTS and Microsoft are focused on making mobile broadband PCs relevant, affordable and accessible to all MTS subscribers with the offering first planned for roll-out in metropolitan areas in Russia before extending to other countries across the region. This service offering follows Microsoft’s and MTS’ support of the GSMA mobile broadband computing initiative to drive adoption of mobile broadband services by mass-market PC buyers. It ensures subscribers can choose the right PC form factor, price, bundled services, and out-of-the-box experience that is best suited for their requirements, while facilitating truly ubiquitous PC connectivity.