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Mobile TeleSystems

September 29, 2000

Mobile TeleSystems commences operations in the Far East

MTS launches its GSM 900 network in the Amursk Region
Moscow — September 29, 2000 — Mobile TeleSystems OJSC (NYSE: MBT), a leading Russian provider of mobile cellular communication services, announced the launch of GSM 900 network in the Amursk Region. Thus, the company now operates in 20 regions of Russia.

As of today MTS has become the third cellular communications operator in the Amursk Region and the only operator to provide services based on the digital GSM standard. The services will be provided by MTS’s affiliate company Amursk Cellular Communications CSJC (ACC) that holds a GSM license with 900 MHz allocation for the Amursk Region. MTS owns 100% of ACC.

Residents of the Amursk Region will be able to appreciate the advantages of MTS offering to its subscribers a whole range of services from the very beginning. Now they can enjoy the advantages of national and international roaming (MTS’s roaming services enable its subscribers to roam in more than 300 towns throughout Russia and in 83 countries world-wide), services of voice mail, SMS messaging.

In September 2000 MTS opened its first customer service center in Blagoveshchensk. Subscribers can now sign contracts, add or cancel services, make payments — all in one office located at 36, Shevchenko St.

The geographical situation of the Amursk Region very well places the cellular communications services provided for roamers who come to this area from other countries, especially from China. “When we just turned the switch on, even during the very first hour, we saw more than 4 thousand subscribers of Chinese operators trying to register in our network”, said Sergei Puzikov, General Director of Amursk Cellular Communications CJSC.

MTS’s whole network in the Amursk Region is built on the equipment by Lucent Technologies. The Lucent Technology equipment used for this network was supplied and installed by NetworkStar Systems Ltd., a Lucent VAR (Value Added Reseller) as its supplier for GSM 900/1800 network development. The first equipment shipments started in May, 2000, the installation of the network began in July.

The first phase of the project was completed in September, 2000. It consisted of four base stations installed in Blagoveshchensk, one base station in Belogorsk, a controller and a switch with a capacity of 10,000 numbers. The installation of base stations in Blagoveshchensk and Belogorsk provided for practically full coverage of these territories by MTS’s network.

Under the agreement between Amursk Cellular Communications CJSC and the Blagoveshchensk Public Switched Telephone Network a 10,000 numbering capacity was allocated for MTS subscribers. Thanks to this numbering capacity MTS’s subscribers in the Amursk Region can use two telephone numbers: a local six-digit number and a federal seven-digit number (902 code).

Commenting on the launch of the network in the Amursk Region Mikhail Smirnov, President of MTS, said: “The Amursk Region with a population of more than one million people is our first experience of building a network in the Far East. Despite a tremendous distance this experience has proved to be a success. The development of the network in Blagoveshchensk reflects the company’s steady movement towards becoming a federal operator, providing cellular communications services throughout Russia. Today 40,000,000 people, a quarter of the whole population of the country, can become our subscribers”.

For further information contact:

MTS
Press Secretary
Eva Prokofieva
tel.: +7 (095) 104-49-38
e-mail: eva@mts.ru

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 20 regions covering more than 40 million people. Information about MTS’s activities and services can be found on MTS’s website at https://www.mts.ru. Lucent Technologies designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as optical and wireless networks; Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. Information about the company can be found at https://www.lucent.com. NetworkStar Systems Ltd., headquartered with its representative office in Cyprus and ZAO NetworkStar Systems (Closed Joint Venture Company) in RF, Moscow, delivers GSM systems manufactured by Lucent Technologies Gmbh. NetworkStar Systems performs all the necessary services for installation, operation and support of the GSM networks in Russia.

 

 

 

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