Moscow, Russian Federation– Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, today announced that it will launch iPhone™ 3G in Russia on October 3.

iPhone 3G combines all the revolutionary features of iPhone with 3G networking that is twice as fast1, built-in GPS for expanded location based mobile services, and iPhone 2.0 software which includes support for Microsoft Exchange ActiveSync and runs the hundreds of third party applications available through the new App Store.

“We are very excited to partner with Apple to launch iPhone 3G in Russia, a testimony to our success in bringing mobile communications to the largest customer base in the country,” said Aleksander Popovskiy, Head of MTS Russia. “MTS was the first Russian operator to develop a pan-regional 3G network, and we are focused on offering our 61 million subscribers the most innovative multimedia content and mobile broadband Internet solutions.”

The company will start offering iPhone 3G at midnight on Friday, October 3, in Moscow, St. Petersburg, Vladivostok and Yekaterinburg, followed by other major cities in Russia later that day.

MTS will sell iPhone 3G in around 1,400 MTS-branded retail stores, as well as through its extensive dealer networks.

Pricing and tariff plans

iPhone 3G will be available for RUR 23,000 for the 8GB model and RUR 27,000 for 16Gb model.

Customers will be able to choose from existing and iPhone-tailored tariff plans — i-Onliner and SIM — that will combine voice and unlimited data packages starting from RUR 1,490 per month. Customers will also have an option to buy iPhone 3G for an initial payment of RUR 5,990 followed by twelve monthly payments.

MTS will reward its iPhone 3G customers with bonus minutes and text messages to enhance their experience.

For additional details or to order an iPhone 3G, please visit www.iphone.mts.ru.

¹ Based on 3G and EDGE testing. Actual speeds vary by site conditions.