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Mobile TeleSystems

June 27, 2002

MTS starts operations in Belarus

Moscow, Russia — 27 June 2002 — Mobile TeleSystems OJSC (NYSE:MBT), Russia’s largest cellular operator, announces the launch of its network in Belarus. The network will be operated through a Belarus-Russian Joint Venture LLC “Mobile TeleSystems” (LLC MTS).

“The launch of the network in Belarus is a breakthrough for our company and is the first step in our expansion beyond the borders of Russia”, said Mikhail Smirnov, President of MTS. — “MTS’s network is expanding rapidly across Russia. We now have over 4 million subscribers in 39 Russian regions and the launch of our GSM network in Belarus is a priority for our company”. At launch, LLC Mobile TeleSystems network covers most of Minsk and the area of Minsk national airport. The network consists of 20 Siemens base stations and a switch with a capacity of 100,000 subscribers. By the end of September, the number of stations in Minsk and its suburban area will reach 70. This will enable LLC Mobile TeleSystems to provide reliable cellular communications both in Minsk and its suburban area by this fall. LLC MTS is the first GSM cellular operator in Belarus to operate in GSM-900 and GSM-1800 standards. “Belarus has a population of ten million and the penetration rate is only 2%. This is an interesting market, which we believe is likely to experience rapid growth”, said MTS President Mikhail Smirnov. “We expect the growth to come from new subscribers and also from Russian roamers. MTS’s network will soon cover the entire railroad and highway from Moscow to Brest, the most convenient route from Russia to Europe”. The network along the Moscow-Brest highway is already under construction, as is the network in Minsk. Reliable communication on the Minsk-Smolensk part of the highway is to be provided at the year-end. By that time, MTS’ network will be launched in Belarus first regional center, Brest and in Orsha, a major railway junction of the Republic. In early 2003, LLC MTS will operate on the Minsk-Brest highway and other Belarus regional centers, Grodno, Gomel, Vitebsk and Mogilev. By 2005 the company plans to complete the coverage of the territory of Belarus, covering at least 90% of its population. OJSC MTS owns 49% of the capital of the new company with the remaining 51% being held by Belarus Unitary Enterprise “Mezhdugorodnyaya Svyaz”. MTS has paid $10 million to the Belarus budget and covered the license fee of $5 million. The cost of work and equipment amounted to $15 million. By the end of 2002, MTS plans to invest $50 million into the network and service infrastructure. Starting from 27 June, Minsk-based subscribers began switching to LLC MTS network in two sales centers and 15 dealer outlets. One of the main advantages of the unified Belarus-Russian MTS’s network is the special roaming rates available for Belarus’ MTS subscribers in over 30 Russian regions. In turn, Russian subscribers enjoy low roaming rates in Belarus. “MTS starts out in Belarus with the slogan ‘Two Nations — One Communication’- said Eduard Makariev, General Director, LLC MTS. — MTS’s coming to Belarus enables residents of both countries, that have been traditionally close in friendship and business, to communicate more easily with one another”. Mobile TeleSystems OJSC (NYSE: MBT) is Russia`s leading mobile cellular operator, which provides services to over 4.2 million of the country’s inhabitants. MTS and its subsidiaries have GSM 900/1800 licenses to provide mobile cellular telephony services in 49 re-gions of Russia and in Belarus. MTS network has operations in 39 regions of Central (including Moscow and the Moscow region), Northwest (including Saint Petersburg), South, Volga, Urals, Siberian and Far-Eastern federal regions. This territory is inhabited by 78,3 million people, or 56% of the population of the Russian Federation. Since June 2000, MTS has been listed on the New York Stock Exchange (NYSE) under the ticker MBT. Additional information about MTS can be found on MTS’s website at

For further information contact:

OJSC “Mobile TeleSystems”
Director (Public Relations)
Kirill Maslentsin
tel.: +7 (095) 737-45-30

Director (Investor Relations)
Andrey Braginski
tel.: +7 (095) 766-01-03

In September 2001, MTS won an international tender conducted by Belarus Communications Ministry for providing GSM communications services in Belarus. To implement the project, a limited liability joint Russian-Belarus venture was established — LLC Mobile TeleSystems (registered with the Belarus Foreign Ministry on 4 April 2002). Its founders are Mezhdugorodnaya Svyaz Unitary Enterprise that owns 51% of the Charter Capital of, and OJSC MTS with 49%of the Charter Capital. On 30 April 2002, was awarded with a licence for constructing and operating Belarus’ first dual GSM 900/1800 network.

UE Mezhdugorodnaya Svyaz — is a subsidiary of Republican Group Beltelecom. This enterprise operates cable, fiber and radio relay communications lines in Belarus, provides for maintenance of main international communication lines, and provides for transmission of transmitting of TV and radio stations signal. Additional information about on UE Mezhdugorodnaya Svyaz can be found at:

Some of the information in this press release may contain projections or other forward-looking state-ments regarding future events or the future financial performance of MTS, as defined in the safe har-bor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions, and that actual events or results may differ materially. We do not intend to update these statement to conform them to actual results. We refer you to the docu-ments MTS files from time to time with the U.S. Securities and Exchange Commission, including the Company’s Form 20-F. These documents contain and identify important factors, including those con-tained in the section captioned “Risk Factors” in our Form 20-F. These factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, in-cluding, among others, potential fluctuations in quarterly results, our competitive environment, de-pendence on new service development and tariff structures; rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with op-erating in Russia, volatility of stock price, financial risk management, and other risk factors.




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