Moscow, Russia — October 31, 2002 — Mobile TeleSystems OJSC (“MTS” — NYSE:MBT) has acquired the remaining 33.33% stake in CJSC Dontelecom. MTS has also acquired a 100% stake in Bit LLC, a company that holds GSM licences for four regions of Russia.
MTS, Russia’s largest mobile phone operator, is pleased to announce that it has completed the acquisition of the remaining 33.33% stake in CJSC Dontelecom from OJSC Elektrosvyaz Rostovskoy Oblasti for $7.5 million. Dontelecom is a GSM operator in the Rostov region, which has a population of 4.4 million. The company has approximately 39,000 subscribers. In late September this year, MTS purchased a 66.66% stake in CJSC Dontelecom for $15 million. This transaction takes MTS’ stake in Dontelecom to 100%. Today, MTS also announced the acquisition of a 100% stake in Bit LLC from Popat Holdings Limited for $0.9 million. Bit LLC holds GSM 900 licences for four regions of Russia: the Republic of Tyva with a population of 311,000, Sakhalin (598,000), Chukotka (72,000), and the Republic of Kalmykia (316,000). The company does not have any customers at the moment. This acquisition increases the number of Russian regions for which MTS holds GSM licences to 56 and expands the Company’s footprint in Russia to 104.8 million or approximately 73% of the country’s population. Commenting on the acquisitions, MTS’ President Michael Smirnov said, “We are pleased to consolidate our ownership in MTS’ important regional venture and further expand the Company’s regional footprint. We continue to pursue our strategy to enhance and expand MTS’ regional business.”
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For further information contact:
Mobile TeleSystems
Investor Relations
Andrey Braginski
tel.: +7 (095) 911-65-53
e-mail: ir@mts.ru
Public Relations
Kirill Maslentsin
tel.: +7 (095) 737-45-30
e-mail: mkk@mts.ru
Press Secretary
Eva Prokofieva
tel.: +7 (095) 737-45-30
e-mail: eva@mts.ru
Gavin Andeerson & Company
Yolande Stratford
tel: +44 (0) 20 2554-1428 |
Mobile TeleSystems OJSC (or “MTS”) — is Russia’s largest cellular operator serving over 5.6 million subscribers. MTS together with its subsidiaries is licensed to provide GSM 900/1800 services in 56 regions of Russia with a total population of 104.8 million people or 73% of the nation’s population. Today, MTS’ network operates in 45 regions of Central (including Moscow and Moscow region), Northwestern (including St Petersburg and Leningrad region), Southern, Volga, Ural, Siberia and Far-Eastern federal districts. MTS’ operates a joint venture in the Republic of Belarus, which has a total population of 10 million. Since June 2000, MTS’ shares have been listed on the New York Stock Exchange in the form of Level 3 ADRs with the ticker symbol MBT. Additional information about MTS can be found on MTS’ website at www.mtsgsm.com
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, including the Company’s Form 20-F. These documents contain and identify important factors, including those contained 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, including, among others, potential fluctuations in quarterly results, our competitive environment, risks associated with future growth, rapid technological and market change, risks associated with telecommunications infrastructure, risks associated with operating in Russia, volatility of stock price, financial risk management, and other risk factors. |
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