At the Company’s EGM held yesterday, the following persons were elected to MTS’ Board of Directors:

• Alexey Buyanov, Senior Vice President, Sistema;
• Alexander Gorbunov, Head of the Corporate Development Department, Sistema;
• Vladimir Lagutin, Member of the Board of Directors of Sistema and Sistema Telecom;
• Sir Peter Middleton GCB, independent director;
• Helmut Reuschenbach, independent director;
• Sergey Schebetov, General Director, Sistema Telecom;
• Vassily Sidorov, President and CEO of MTS.

Alexander Gorbunov and Sergei Schebetov are new members of the Company’s Board of Directors. Alexander Goncharuk, President of Sistema, and Michael Guenther, Board Member, T-Mobile Worldwide Holding GmbH, have vacated their positions.

The Board of Directors meeting took place on the same day and appointed Sergey Schebetov as Chairman and Vladimir Lagutin as Deputy Chairman of MTS’ Board of Directors.

***

Biographies

Sergey Schebetov is the General Director of Sistema Telecom.

Born in 1966. In 1991 Mr. Schebetov graduated from Novosibirsk State University with a major in Quantum Optics. He holds a Master’s degree (MBA) from Stanford University Business School (USA), which he graduated from in 1994.

Mr. Schebetov was appointed the General Director of Sistema Telecom in January 2006. Prior to this, in April 2005, he was appointed the First Deputy General Director of Sistema Telecom. From June 2001, Mr. Schebetov was acting as the Head of the Corporate Development Department of AFK Sistema, in charge of AFK Sistema’s business trends development strategies.

From 1999-2001 he was the Development Director of Integrum-Techno and he worked in a number of high-tech companies in Russia and the USA. From 1997-1999 he was the Vice President of the Corporate Finance Department at ATON Capital Group and from 1994-1996 Mr. Schebetov worked as a consultant in the Russian office of McKinsey and Company.

Alexander Gorbunov is the Head of the Corporate Development Department of Sistema.

Born in 1967. In 1992 Mr. Gorbunov graduated from the Moscow State Physical Engineering Institute, majoring in Nuclear Physics. In 1999 he was conferred an MBA degree from the Harvard Business School.

Mr. Gorbunov was appointed the Head of the Corporate Development Department of AFK Sistema in July 2005. From 2003 he held the position of Director of Strategy at Mobile TeleSystems and from 2002 he was in charge of the Strategic Analysis and Planning Department of Sistema Telecom. Prior to this, Mr. Gorbunov was employed by the Moscow and Boston offices of Bain&Company.