Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that is subsidiary MTS-Ukraine has won a tender for a nationwide license for the provision of 3G telecommunications services in the 1950-1965 MHz/2140-2155 MHz ranges as a result of the open tender held by the National Commission for the State Regulation of Communications and Informatization (NCSRCI). The cost of the license amounted to UAH 2.715 bln.

The license has been granted for a term of 15 years. In accordance with the conditions stipulated in the tender documentation, MTS is required to launch 3G services in all of the regional centers across Ukraine within 18 months upon allocation of the license.

Mr. Andrei Dubovskov, President and CEO of MTS Group, commented, “The 3G license tender was organized in a very professional manner, while each stage was conducted with the highest level of transparency. The tender was broadcast live, and one could watch online how winners of the each of the lots were identified. As a result of the tender, citizens of Ukraine will quickly gain access to high-speed mobile Internet, which will boost economic development. Broader access to new Internet technologies will also enable the launch of the projects in areas of education, culture, telemedicine and mobile commerce.”

He added, “Over the last three years MTS has invested over USD 500 million towards the modernization of our networks throughout Ukraine, which will enable us to quickly launch 3G networks. The license will allow us to quickly offer customers access to high-speed mobile Internet and value-added services. In the coming years, mobile data will become the key driver of revenue growth for our business in the region.”

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru