Mobile TeleSystems PJSC (NYSE:MBT; MOEX: MTSS) and Vodafone (NASDAQ: VOD) announced that they have agreed to extend their strategic partner market agreement and expand the scope of it in Ukraine, signifying a deeper relationship between the two companies in the country. Under the new partnership, the companies will roll out 3G and develop a number of new services in the market using the Vodafone brand in Ukraine.

Both companies have been working together since the original partner market agreement was signed in 2008. Under this agreement, MTS has gained exclusive access to a range of products, services and devices from Vodafone for both consumer and corporate markets. It has also helped MTS leverage Vodafone’s expertise in marketing and deployment of new technologies. This new agreement builds on and develops this long-standing partnership.

Vasyl Latsanych, MTS Vice President for Marketing, remarked, “Since MTS and Vodafone began our partnership, MTS has drawn on Vodafone support for a number of key strategic initiatives, including the introduction of data services throughout our markets. Now, with the emergence of 3G, is right time to deepen our partnership with Vodafone to take advantage of growth opportunities in the Ukrainian telecommunications market.”

Headquartered in Kiev, MTS Ukraine has more than 20 million customers and 3,800 employees.

The launch of 3G services under the Vodafone brand in Ukraine will commence in the coming months and will include the transition of MTS’s retail outlets and the majority of its dealerships.

Under this new strategic partnership, Vodafone will introduce a number of its services to the Ukrainian market which have proved extremely popular in Europe, including bundled offers, competitive long-distance international calls and worry-free roaming when abroad.

Ukrainian customers will also benefit from Vodafone’s extensive 3G experience when it launches the new technology in the coming months. Vodafone, which has already rolled out 3G in 26 countries, will advise on network operation, network optimization and the introduction of high quality 3G services, including music and games applications for consumers.

Vodafone’s global 3G expertise will help expand access to the internet for Ukrainian consumers and businesses alike, giving a boost to the internet economy and helping to drive the next stage in the development of Ukraine’s telecommunications market.

Vodafone Partner Markets Chief Executive Stefano Gastaut said: “The new, enhanced agreement with MTS enables us to bring the best of Vodafone’s products and services to the people of Ukraine. MTS Ukraine is building a high quality 3G network, which means Vodafone will launch in a strong position in the market. Our deeper co-operation in the business – signified by the introduction of the Vodafone brand – will bring additional benefits to consumers and businesses as we focus on a successful launch of 3G data services and greater adoption of the mobile internet.”

MTS Ukraine General Director Oleg Prozhyvalsky said: “Undoubtedly, the launch of the Vodafone brand in Ukraine is the most significant event in the market over recent years. Ukrainian customers will be able to get access to a wide range of 3G services already available in Europe and other Vodafone countries. The implementation of the company’s unique global technological and marketing expertise in Ukraine will have a positive impact for consumers, enterprises and the economy.”

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems PJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru