Today, in line with the implementation of a portal brand by the Sistema Telecom group of companies, a renewed brand of the largest Russian mobile phone operator, MTS, was introduced.

The joining of different brands into a unified “family” reflects a new stage in the development of the Russian telecommunications market – the creation of a multiple-discipline telecommunications group. As of May 2006, the following core companies of the group will work under a unified brand: MTS, Comstar UTS, MGTS and MTU-Intel, in addition to the managing company itself Sistema Telecom.

“The chosen visual for the portal brand – a simple and eternal symbol in the shape of an egg – defines the essence of modern technologies: external simplicity that hides the striking complexity of what is inside,” highlighted MTS’ acting President and CEO, Leonid Melamed. “This portal brand will provide MTS subscribers with access to new hi-tech quality services that were previously impossible, including a single access point to the Internet, to mobile and fixed-line phones, single billing, and a single interface for managing one’s services. In other words, the user will gain access to a single information space that he will be able to shape according to his own unique needs. The launch of the portal brand will allow the Sistema Telecom group of companies, including MTS, to best meet the high demands of the modern day user’s mobile services requirements.”

The renewed MTS brand symbolizes leadership and a dynamic and innovative approach to business. The external change – new logo, corporate style and sales offices look – is a reflection of the large-scale internal changes that are taking place in the Company in response to the shift from a technological business development model to the one more oriented towards the client.

“In our marketing strategy we are singling out two main directions,” commented MTS’ Vice President of Marketing, Grzegorz Esz. “The first one is the simplification of marketing communications creating simple tariffs with clear advantages for subscribers and clear segmentation of offers and services. The second direction is the simplification of the interface for dialogue with our clients, for example, the new sales offices’ format is aimed at turning them into stores to make them visually more welcoming and practically more convenient for buyers, who will be able to receive information and to test new technologies and services.”

The changes relating to MTS’ brand renewal will affect all the Company’s operational regions and areas of collaboration with subscribers. New payment cards are being circulated that will be valid along with the old payment cards until the latter expire. A federal advertising campaign has been launched, in which all MTS’ advertising and informational materials will be renewed. A renewed version of the Company’s website is already available at www.mtsgsm.com. Over the next few days, all the signs at existing MTS sales offices will be renewed and work is underway to transfer them in line with the service standards reflected by the new ideology of the brand.

In the near future, the Company’s subscribers will be offered new tariff offers and start-up kits using the renewed corporate style. Subscriber contracts will also be changed, but all previously signed contracts will be valid without any limitations, and there will be no need for existing MTS subscribers to renew them.