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Mobile TeleSystems

May 14, 2001

MTS and Siemens carry out first live demonstration of UMTS 3G mobile network in Russia

Moscow, Russia, May 14. — Mobile TeleSystems OSJC (NYSE: MBT), the leading Russian mobile operator, and Siemens Information and Communication Mobile carried out the first live demonstration of UMTS 3G mobile communication system in Russia at the “Svyaz Expocomm — 2001” international exhibition. The live demonstration of UMTS equipment featured the first demonstration of an up to 1.2 Mbit/s data rate over the air. MTS is currently preparing the launch of Russia’s first UMTS test network in Moscow.

Siemens and MTS are providing a joint outlook of the world of third generation network solutions, services and applications the “Svyaz Expocomm — 2001” exhibition, which is being held from May 14 — May 18 in Moscow. UMTS is demonstrated via the real time video-conference with video streaming live over an TDD air interface with a transmission speed of up to 1.2 Mbit/s.

“Today all of the world’s biggest operators like Telia, D1 T-Mobil and D2 Vodafone and Wind are building their UMTS networks using Siemens equipment. We are very pleased that MTS have also selected Siemens to supply the first UMTS test network in Russia”, — said Mr. Rymond Armes, President of the Siemens Information and Communication Mobile in Russia. — “The third generation of mobile communications, especially the TDD solution for UMTS, will revolutionize the way that we transmit data by allowing people high-speed mobile access to the Internet. With UMTS TDD, the bandwidth will be increased by up to 2 Mbit/s, enabling people to surf the web from their mobile terminal, and even access their files from their company’s network while working away from the office.”

MTS and Siemens are currently creating a UMTS test network in Moscow based on the equipment like the one demonstrated at the “Sviaz Expocomm — 2001"exhibition. The structure of the test zone will include a switch (UMSC), a radio network controller and three base stations. The experiments, which MTS and Siemens experts will carry out on this test network, are designed to solve a set of technical tasks including estimation of electromagnetic compatibility, handover and roaming of the subscribers, measurements of real data transfer rate given on different sites of the test zone, provision for the stability and quality of connection.

“The results of the research on the test network will be used by the Russian Ministry of Communications and MTS for further development of licensing conditions and principles on which future UMTS networks will be built in this country”, — said Dr. Jury A. Gromakov, Technical Vice President of Mobile TeleSystems. — “We are keeping up with the times and doing our best to provide our customers with the state-of-the-art services that correspond to the latest developments in mobile communications”.

The development of the 3G applications and services that will deliver multimedia information to UMTS mobile handsets and devices have already started. The 3G applications and services will deliver information at speeds many times faster than those of today’s Global System for Mobile communication (GSM) networks, including the GPRS mode.

One of the most important features of UMTS mobile networks is that customers will be able to gain high-speed access to various services through the Internet, as well as send and receive full-motion and video services via their mobile devices.

For further information contact:

press officer
Mrs. Eva Prokofieva
tel: +7095 737 4530,

Siemens IC Mobile

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

The Siemens Information and Communication Mobile Group (IC Mobile) offers the complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers and cordless phones as well as products for wireless home networks. The infrastructure portfolio includes the complete range of GSM, GPRS and UMTS mobile network technologies from base stations and switching systems to intelligent networks, e.g. for prepaid services. Applications cover mobile services for Unified Messaging, Location Based Services, and Mobile Payment. For the fiscal year 2000 (which ended September 30, 2000), IC Mobile recorded sales of EUR 9 billion and EBIT of EUR 758 million. The group employs 27,450 employees worldwide.




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