Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, and Shyam Telelink Limited ("Shyam Telelink"), JSFC Sistema's telecommunications subsidiary in India, announces the agreement to allow Shyam Telelink to use MTS brand in India.

Under the terms of the agreement, Shyam Telelink will have the right to use the MTS brand in its marketing communications and advertising in India, beginning February 2009. The decision to introduce the brand to India is reflective of the brand’s success in the Company’s markets of operation since its launch in May 2006. In April 2008, MTS brand was recognized as one of the BRANDZ™ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading global market research and consulting firm.

“We are excited about the opportunity to extend our brand values to one of the most populous countries and most dynamic mobile growth markets in the world,” noted Ms. Cynthia Gordon, Global Brand Chief of MTS. “We are confident that the MTS brand will translate well to the Indian market, and its introduction will bring tangible benefits to MTS and raise the overall value of its brand.”

“Coming to market with a fully developed and globally recognized brand will give us a clear competitive advantage in the marketplace,” said Mr. Vsevolod Rozanov, CEO of Shyam Telelink. “The MTS brand offers Shyam a valuable portfolio of marketing guidelines that will provide time and cost advantages. The universality of MTS’ brand values and the simplicity of its design will resonate well among potential customers in India, and we are confident that the brand will aid in the expansion of our business.”

The agreement is limited to using the MTS brand in India and there are no further plans for participation in Shyam Telelink’s operations or launching MTS products or services in India. The terms also stipulate that MTS will act as the brand guardian to insure brand usage and marketing communications adhere to the MTS brand guidelines.