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Mobile TeleSystems

August 30, 2000

Mobile TeleSystems OJSC and Schlumberger Industries CJSC announce a large-scale agreement

MTS is ready for further substantial growth in its customer base
Moscow, Russia, August 30, 2000 — Mobile TeleSystems OJSC (NYSE: MBT) (“MTS”), a leading Russian provider of GSM 900/1800 mobile cellular communication services, announced today that it has signed a large-scale agreement with Schlumberger Industries CJSC for supply of SIM-cards.

Under this agreement, Schlumberger Industries CJSC will supply MTS with 500,000 SIM-cards, each with an EEPROM memory of 16 kBs. This agreement follows almost four months of cooperative efforts by specialists from both companies working to develop a SIM-card electronic profile. Such efforts included a test project in which 10,000 SIM-cards were supplied.

Schlumberger Industries CJSC was founded by a world leader in smart card manufacturing —Schlumberger Ltd. (NYSE: SLB). According to Card Technology Journal, in 1999 Schlumberger was the second largest supplier of smart cards in the world.

Schlumberger Industries CJSC is MTS’s third supplier of SIM-cards. MTS also has agreements with ORGA-Zelenograd CJSC and Gemplus GmbH.

The substantial growth of MTS’s customer base in 2000 surpassed analysts’ projections. The number of MTS subscribers more than doubled during the first six months of 2000 and by mid August 2000 exceeded 770,000. Large-scale agreements with SIM-card suppliers ensure that MTS will be able to keep up with the high pace of customer growth.

Commenting on the agreement, Shagit Reznikov, Director of Advanced Technologies and Services at MTS, noted: “An agreement with the world leader in smart card manufacturing brings MTS to a new level of operations. Such an agreement ensures that we have access to state-of-the-art technology, which is especially important in developing third generation communications. In addition, an agreement of this magnitude demonstrates the high quality of MTS’s technical support, as well as its ability to exchange information with other companies. This means that MTS will always be among the first to develop and implement new technologies.”

For further information contact:

Press Secretary
Eva Prokofieva
Tel: +7 (095) 921-34-50
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 19 regions covering 39 million people. Information about MTS’s activities and services can be found on MTS’s website at https://www.mts.ru.

Schlumberger (NYSE: SLB) is the leading provider of smart card-based solutions worldwide. Drawing on 20 years of experience in pioneering smart card innovations, Schlumberger continues to work to develop the next generation of smart cards, parking terminals, ticketing machines, payphones, banking terminals, servers, software, applications, and systems integration that will play a key role in the digital age of the 21st century.




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