New Delhi - March 26, 2009 - Sistema Shyam TeleServices Limited (SSTL), a joint venture between Sistema (LSE: SSA) of Russia and Shyam Group of India, today announced the launch of its globally acclaimed brand MTS in India with the commencement of its services in Tamil Nadu. The company has entered into agreement with Mobile TeleSystems OJSC (MTS; NYSE: MBT) of Russia, to launch its pan-India operations under the MTS brand. SSTL has licenses and spectrum to provide mobile telephony services on the CDMA platform in all 22 circles across the country, covering 28 states.

Speaking on the occasion, Sergey Cheremin, Senior Vice President & Head of External Relations Division, Sistema said, “India is a key market for Sistema, as it offers high potential for growth. Our majority stake in Sistema Shyam TeleServices, is in alignment with our strategy to enter high growth markets and have an extended footprint in telecom. The market dynamics, growth prospects, business environment in India, substantiate our decision.”

“The tie-up with Sistema Shyam TeleServices gives us an opportunity to increase our brand value in one of the most exciting telecom markets in the world. We strongly believe that our association will be instrumental in extending a global telecom experience to the MTS subscribers in the country”, said Mikhail Gerchuk, Vice President & Chief Commercial Officer, MTS.

The existing services of SSTL in Rajasthan under the brand ‘Rainbow’ will also be rebranded to MTS shortly. The company aims to significantly increase the level of telecom penetration in the country by offering subscribers access to superior connectivity at affordable prices.

Speaking at the launch, Mr. Vsevolod Rozanov, President and CEO of Sistema Shyam TeleServices, said: “The globally recognized brand MTS, built on a superior technology platform and strong marketing programmes, will give a competitive advantage to Sistema Shyam TeleServices. Our mission is to enable accessibility and connectivity, to enable people communicate seamlessly.”

“We are proud on the launch of pan-India operations of Sistema Shyam TeleServices with MTS. We intend to play an active role in the overall development of India’s telecom infrastructure as well as in providing world-class, superior and value-added services for our subscribers,” added Mr. Alok Tandon, Managing Director Sistema Shyam TeleServices 

MTS is one of the Top 100 Most Powerful Brands in the world, and is the 8th largest mobile operator in the world. This is recognition of its leadership across the CIS and increasing global relevance.

About Sistema Shyam Teleservices

Sistema Shyam TeleServices {SSTL} is a joint venture company between Sistema {LSE: SSA} of Russia and Shyam Group of India. Sistema is the majority share holder in this joint venture with 74% stake. SSTL has licenses and spectrum to provide mobile telephony services on the in all 22 circles across the country.