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Mobile TeleSystems

September 27, 2000

A million plastic cards from MTS

Moscow, Russia, September 27, 2000 — Mobile TeleSystems OJSC (NYSE: MBT), Russia’s leading provider of GSM-900/1800 based mobile cellular communications services, today announced that one million plastic cards have been activated in its in-house personalization center. Today the center is able to personalize various types of smart cards, including SIM and scratch cards.

MTS is the only cellular communications operator in Russia to have in-house personalization center. With efficient support of Gemplus, the world’s number one provider of smart card based solutions, the center was opened in May 1999. It is fully equipped to ensure secure production of SIM and scratch cards. Certified equipment by DataCard company (USA) enables personalization of SIM-cards from different providers, in particular from Gemplus, Schlumberger and Orga, with which MTS has frame agreements.

Today MTS carries out all personalization functions from design, colour print to file structure creation, general and personalized data loading.

A mobile handset functioning is impossible without a SIM card which is inserted into a cellular device and contains personalized subscriber’s data such as code for card identification by IMSI (International Mobile Subscriber Identify), PIN and PUK codes. Such data can be entered into the card either during the process of cards manufacturing or in specialized centers. Such centers also produce scratch cards used by subscribers to pay for communications services. Unlike SIM-cards with data inserted by electrical means, scratch cards use the individual code printed on them and covered by special removable layer.

Shagit Reznikov, Director of MTS Value Added Services Division, said: “The priority objective for all cellular providers is to ensure security. MTS’ personalization center is the place where all subscriber’s personal data are generated. Now we do not have to rely on third party’s guaranties but control plastic cards personalization processes ourselves. Our aim has been to ensure security on all phases of SIM-card life cycle. It is especially important since in accordance with a Ministry of Communications decree, MTS was appointed a coordinating operator in the Central Region of Russia, which includes 16 operators, and thus must provide these operators with SIM-cards. Besides, we are always on the cutting edge of progress — our specialists follow all innovations and state-of-the-art cards at the lowest prices are available to MTS.”

Rene Barchi, General Manager Gemplus CIS, said: “The MTS personalization center is the result of a successful strategy of cooperation between two leaders. Gemplus is not only a recognized supplier of high-quality SIM-cards but as well a successful Solution provider. This personalization center gives MTS high flexibility and allows to dramatically reduce time to market”.

Cellular communications today are not only base stations and switches. They are unconceivable without reliable transport and transmission environment, billing centers, information support, SIM and scratch cards personalization centers. Many Russian providers enjoy the advantages of ordering SIM-cards in MTS’ center: unlike other large personalization centers with a minimum order of tens of thousands cards, Mobile TeleSystems personalization center can produce even small lots starting from 100 cards. Among MTS’ clients TAIF-Telcom OJSC (Kazan), Tambovskaya Electrosvyaz OJSC, Iaroslavl GSM CJSC, ReCom OJSC (Orel), Amurskaya cellular communicatins CJSC (Blagoveshensk), Mobile Communications Systems OJSC (Omsk), SMARTS CJSC branch in Ivanovo and a number of other operators.

For further information contact:

MTS
Press Secretary
Eva Prokofieva
tel.: +7 (095) 104-49-38
e-mail: eva@mts.ru

Gemplus
Communication manager
Sabine Belling
tel: +49 (7158) 185-230
e-mail: sabine.belling@gemplus.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 the Company, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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 statement to conform them to actual results. We refer you to the documents the Company files from time to time with the U.S. Securities and Exchange Commission, specifically, the Company’s most recent Form F-1. 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, volatility of stock price, financial risk management, and future growth subject to risks.

Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading GSM 900/1800 mobile cellular operator. MTS has GSM 900/1800 licenses to provide mobile cellular telephony services in 34 regions of the Russian Federation, covering 45% of the country’s population. It operates in 19 regions covering 39 million people.

Information about MTS’s activities and services can be found on the company’s website at www.mts.ru.

Gemplus (www.gemplus.com) is the world’s number one provider of smart card based solutions for security, wireless and e-business applications. Offering consultancy services, design, software, hardware, personalization and full implementation, Gemplus works with its customers around the world to deliver comprehensive, integrated and tailor-made smart card based systems.

Founded in 1988, Gemplus had sales of over 767 millions of Euro ($US 817 millions) in 1999, and employs almost 6,300 people in 17 manufacturing facilities, 7 R&D centers and 44 sales and marketing offices located in more than 37 countries.

 

 

 

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