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Mobile TeleSystems

May 14, 2001

Mobile TeleSystems OJSC launches GPRS networks in regions

MTS develops packet data transmission in its network
Moscow, Russian Federation — 14 May 2001 — Mobile TeleSystems OJSC (NYSE: MBT), Russia’s leading mobile operator, announced a technical launch of GPRS (General Packet Radio Service) networks in the Tver, Smolensk, Yaroslavl and Kostroma regions.

GPRS networks enable all MTS base stations installed in the above mentioned regions to operate in GPRS mode. Thus, MTS subscribers in the Tver, Smolensk, Yaroslavl and Kostroma regions can now enjoy GPRS services within the whole territory of MTS coverage area in these regions. GPRS equipment in Yaroslavl and Kostroma regions is delivered by Siemens, one of the leading telecommunications suppliers worldwide. GPRS equipment in Tver and Kostroma regions is supplied by Motorola, a global leader in providing integrated communications solutions.

Commenting on this event Mr. Yuri Gromakov, technology and development Vice president of Mobile TeleSystems OJSC, said: "We are used to the fact that any answer and any current information can be obtained from the Internet, which is being transformed into a global informational environment. MTS is now making another step towards ensuring the mobility of the Internet. We are really enhancing the geography of mobile access to the worldwide "web" for our subscribers. GPRS services can now be available not only to Muscovites but also to inhabitants of four more regions of Russia".

On August 28th, 2000 MTS and Motorola experts carried out a technical launch of the first phase of GPRS network in the Moscow license area using test software. Today a commercial version of the software is installed in MTS’s network that ensures GPRS on all GSM 900/1800 base stations in the region.

Motorola software installed on MTS controllers in Moscow makes it possible to use all temporary channels of GSM base stations in the switching mode. This enables to use GSM network’s resources equally for GPRS. Additionally, new software allows MTS subscribers, who use GPRS, to work simultaneously in three temporary channels, and due to this the maximum data transmission rate in MTS network reaches 40,2 Kbps. In future the speed will be even higher. It is expected with the development of the GPRS technology, that MTS will be able to offer its subscribers GPRS services and applications with data transfer rates of up to 86 Kbps by the end of 2001.

During GPRS trials in Moscow a group of corporate users has been formed who have chosen to optimize their business by using new technologies. MTS GPRS network allowed those corporate users to get instant access to the Internet. While on business trips, subscribers are able to access different private and public resources and services (banking, e-trading, stock exchanges, e-shopping etc).

For further information contact:

Press Secretary
Eva Prokofyeva
tel: +7 (095) 104-49-38

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




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