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Mobile TeleSystems

November 1, 2000

Mobile TeleSystems OJSC (MTS) launches its Central Urals network

MTS launches GSM 900 network in the republic of Udmurtia
Moscow, Russian Federation — 1 November 2000 — Mobile TeleSystems OJSC (NYSE: MBT), Russia’s largest GSM 900/1800 mobile operator, today formally launched a GSM 900 network in the Republic of Udmurtia, thus expanding its coverage to 21 Russian regions in total.

MTS is the first mobile operator in Udmurtia to offer digital GSM services and the third to have entered the local market. The service provider, Udmurtia Digital Networks CJSC has a GSM 900 license to provide mobile telephony services in the Republic of Udmurtia. It is owned by MTS and UdmurtTelecom OJSC, Udmurtia’s main telecommunications operator. In line with its partnership agreement, in addition to financing the launch of the MTS Udmurtia network, MTS also manages all technical issues, including feasibility studies and supply agreements. All the work was carried out in close co-operation with UdmurtTelecom OJSC, which facilitated the rapid launch of the first phase of the network.

Commenting on today’s announcement, Mikhail Smirnov, President and Director of MTS said: “Udmurtia’s geographical position in the Western part of Central Urals has determined the development of mechanical engineering enterprises, large numbers of which are situated in Izhevsk. The region has highly skilled human resources and a developed communications infrastructure. These conditions are favourable to developing MTS’s presence in Udmurtia.

“Udmurtia’s recent economic growth has resulted in a greater demand for all telephony services. At the same time the region is becoming more and more attractive for Western businesses which means increased demand for roaming, especially for business people coming from Germany, Greece and the USA. We’ve got all reason to believe that we will be successful in this region,” Mr Smirnov said.

The whole MTS network in Udmurtia uses equipment provided by Siemens, which was selected as a supplier on the basis of a tender. The first equipment was delivered in June 2000. Network construction began at the same time.

During the first stage, eight base stations were installed in the town of Izhevsk and two more in Udmurtia’s industrial centres in the towns of Votkinsk and Sarapul. The installation of base stations means practically full MTS cellular coverage in these towns.

Udmurtia’s inhabitants will have immediate access to a wide range of MTS services, including national and international roaming in over 350 Russian towns and 83 countries of the world; voice mail; SMS (short messaging system); call divert; and, number identification services. MTS Udmurtia will also benefit from being part of MTS unified tariff policy.

In November 2000 MTS opens their first complex service centre in Izhevsk, the customers will be able to subscribe to the network, change service package and pay their bills there.

During the next phase, eight more base stations will become operational that cover Udmurtia’s larger towns and settlements, situated along motorways which connect the republic with its neighbouring regions to the South and North.

“We have built yet another network which will be integrated into the overall MTS network structure. Nevertheless, it is a separate project which has been implemented from start to finish,” Mr Smirnov added.

“The significance of this project for MTS is our technical ability to build a network, so far removed from our own operating networks. This allows us to confidently plan further regional expansion and become a truly pan-national operator”.

For further information contact:

MTS
Press Secretary
Eva Prokofieva
tel.: +7 (095) 104-49-38
e-mail: eva@mts.ru

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor 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 documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically, the Company’s most recent Form F-1. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors,” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures; rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia, volatility of stock price, financial risk management, and future growth subject to risks.

Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading GSM 900/1800 mobile cellular operator. MTS has GSM 900/1800 licenses to provide mobile cellular telephony services in 34 regions of the Russian Federation, covering 45% of the country’s population. It has commenced operations in 21 regions covering more than 41 million people. Information about MTS’s activities and services can be found on MTSs website at www.mtsgsm.com. UdmurtTelecom OJSC is the legal successor of Rossvyazinform, state communications enterprise, which operated in the Republic of Udmurtia until it was taken over by shareholders in 1993. It comprises 13 branches, situated in major regional centres and in the town of Izhevsk. UdmurtTelekom has 4155 employees. UdmurtTelekom provides local and regional telephony, telegraph, data and broadcast transmission and telematic services. Information about UdmurtTelecom’s activities and services can be found on its website at www.utc.ru.

 

 

 

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