MOSCOW, RUSSIAN FEDERATION – JUNE 29, 2007 – MOBILE TELESYSTEMS OJSC (“MTS” - NYSE: MBT), THE LARGEST MOBILE PHONE OPERATOR IN RUSSIA AND THE CIS, ANNOUNCES THE DECISIONS MADE AT THE ANNUAL GENERAL MEETING (AGM) OF THE COMPANY’S SHAREHOLDERS ON JUNE 29, 2007.

The Meeting adopted the following resolutions:

• To approve the Company’s Russian version of the annual report and annual accounting statements in accordance with the Russian Accounting Standards.
• To pay an annual dividends of RUR 9.67 per ordinary MTS share (approximately $1.87 per ADR ) for the 2006 fiscal year, amounting to a total of RUR 19.28 billion ($747.44 million). Dividends should be paid out before the end of 2007.
• To elect the following persons to the MTS Board of Directors (BoD):

-  Mr. Anton Abugov, First Vice-President, Head of Strategy and Development Complex, Sistema;

-  Mr. Alexey Buyanov, Senior Vice-President, Head of Financial Complex, Sistema;

-  Mr. Sergei Drozdov, Senior Vice-President, Head of Property Complex, Sistema;

-  Ms. Tatiana Evtushenkova, Vice-President of Strategy and Corporate Development of MTS;

-  Mr. Mohanbir Gyani, independent candidate;

-  Mr. Leonid Melamed, President and CEO of MTS; and

-  Mr. Paul Ostling, independent candidate.

• The number of the BoD remains unchanged from last year.

• To elect members of the Auditing Commission.
• To approve CJSC Deloitte and Touche CIS as MTS’ auditor.
• To approve a restated version of MTS’ Charter, the Statute on Remunerations and Compensations to Members of MTS Board of Directors and the restated version of the Statute on the Board of Directors.

At a subsequent meeting of the new Board of Directors, Mr. Alexey Buyanov was named Chairman of the Board, while Mr. Sergei Drozdov was named Vice Chairman of the Board.

President and CEO of MTS, Mr. Leonid Melamed, highlighted, “We are grateful to the previous members of the Board for the work they performed over the course of their tenure with the Company. We believe each of the new Board directors brings particular strengths and extensive experiences to MTS that will further strengthen our corporate governance and help us further develop our business."