MTS Network now covers 39 Russian Regions Moscow, RF — June 19, 2002 — Mobile TeleSystems OJSC (NYSE:MBT) announces the launch of operations in Karelia, Tambov, and the Altai Republic, in line with the Company’s regional expansion strategy.
Mobile TeleSystems, Russia’s largest mobile cellular operator with over four million subscribers, is launching operations in an additional three Russian regions this week. The launch of MTS’ network in Karelia is an important stage of the Company’s expansion into the North-West of Russia. By commencing operations in Tambov, the Company has almost completed the roll out of its network in the Central-European part of Russia. The launch of MTS’ network in the Altai Republic, combined with MTS’s recent acquisition of Kuban GSM, forms part of MTS’ strategy of expanding into traditional and popular holiday resorts of Russia. “Nearly half of our subscribers — 1.8 million people — live in the regions. Our strategy is to become a truly national GSM operator covering all key regions of the country”, said MTS president Mikhail Smirnov. “For the past two months MTS has been particularly active in developing our regional operations. Over this period, MTS has launched networks in six regions of the country and acquired two leading regional mobile cellular operators, Kuban GSM and BM-Telecom”. MTS customers in the three new regions of operation will enjoy the advantages of MTS’ national presence. Key advantages of MTS’ services in the new regions include attractive local tariffs and favorable roaming rates in 39 regions of the country where MTS operates. From the first day of operations in the new regions, MTS will open integrated service and call centers. Launching operations in Karelia will result in the MTS network covering the whole west border of Russia, from the Murmansk to the Krasnodar region. From the very beginning of its operations in Karelia, MTS will provide a reliable network service throughout Petrozavodsk and its suburbs. MTS has installed a switch with initial capacity of 50,000 numbers in Petrozavodsk. At present, there are 11 MTS base stations in the Karelia Republic. The company intends to deploy base stations along the Kola route (St Petersburg — Moscow) and in Petrozavodsk suburbs. The MTS network in Tambov includes a switch with a total capacity of up to 50,000 subscribers and 19 base stations covering Tambov, Kotovsk, Michurinsk and the Tambov-Moscow federal highway. By the end of 2002 the MTS network will cover all major cities and district centers of the Tambov region, as well as key federal and regional highways. To date in the Altai Republic, MTS has installed six base stations and one controller. The network ensures complete coverage of Gorno-Altaisk and its suburbs, and also covers one of the few regions of skiing resorts in Russia, particularly popular among tourists, such as Aisky Bridge, tourist bases “Korona Katuni” (“The Katun Crown”) and “Tsarskaya Okhota” (“Tsar Hunting”). In the near future the company plans to extend its coverage zone further along the Chuisky highway, following popular tourist routes. To mark the Company’s expansion in to the new regions, MTS has launched special Web-sites www.tambov.mts.ru, www.karelia.mts.ru and www.altai.mts.ru containing information on their operations in the regions.
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For further information contact:
OJSC “Mobile TeleSystems”
Director (Public Relations)
Kirill Maslentsin
tel.: +7 (095) 737-45-30
e-mail: mkk@mts.ru
Director (Investor Relations)
Andrey Braginski
tel.: +7 (095) 767-01-03
e-mail: ir@mts.ru |
Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading mobile cellular operator, which provides services to over 4 million of the country’s inhabitants. MTS and its subsidiaries have GSM 900/1800 licenses to provide mobile cellular telephony services in 49 regions of Russia, covering 93.5 million people or 63% of the country’s population and Belarus. MTS network has operations in 39 regions of Central (including Moscow and the Moscow region), Northwest (including Saint Petersburg), South, Volga, Urals, Siberian and Far-Eastern federal regions. This territory is inhabited by 78,3 million people, or 56% of the population of the Russian Federation. Since June 2000, MTS has been listed on the New York Stock Exchange (NYSE) under MBT symbol. Additional information about MTS can be found on MTS’s website at www.mtsgsm.com
Tambov Region: The Tambov Region is located in the heart of the Oka-Don plain. It covers over 34.3 thousand square kilometers. It stretches out from the north to the south for 245 km, from the West to the East — for 220 km. The population of the Tambov Region totals 1,256.6 thousand people. The area is in the Central Chernozem Region and the Central Federal District of the Russian Federation. It borders on the Saratov, Voronezh, Penza, Lipetsk and Ryazan regions.
Altai Republic: The Altai Republic is located in the heart of Asia. The frontier of the Russian Federation with China, Mongolia and Khazakhstan runs along the territory of the Altai Republic. There is an administrative border that divides the Altai Republic from the following parts of the Russian Federation: The Tyva and Khakasia Republics, the Altai Territory, and the Kemerov Region. Altai’s population is 205.5 thousand people. Owing to its natural resources, theAltai Republic has the potential to become a recreational center of not only a regional, but also national and even international scale. Its unique environment offers fantastic opportunities for all kinds of tourism, balneal resorts and health centers, trips and excursions.
Karelia Republic: The Karelia Republic is located in the North-West of Russia; it belongs to the North Economic District of the Russian Federation. The area of Karelia totals 180.5 thousand km. Karelia borders on Finland in the west, Leningrad and the Vologda regions in the south, Murmansk region in the north and the Arkhangelsk region in the east. The republic’s north-east part is washed by the White Sea. Karelia’s western frontier coincides with the border between Russia and Finland. The population of the Karelia Republic totals 766.4 thousand people. The Karelia Republic enjoys a favourable economic and geographic position (proximity to the central industrially developed regions of Russia and Western Europe, advanced water-transport system), and possesses considerable natural resources.
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, including the Company’s Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form 20-F. These factors 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 other risk factors. |
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