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Mobile TeleSystems

November 1, 2001

“Mobile TeleSystems” introduces a new generation of tariffs

MTS new tariff plans make it impossible to keep silent
Moscow, Russian Federation — 01 November, 2001 — Mobile TeleSystems OJSC (NYSE:MBT), Russia’s largest GSM 900/1800 mobile operator, today announced the launch of two new tariff plans, that will replace “Youth” and “Favorite” tariffs. In terms of cutting costs, the new tariff plans “Avant-Guard” with federal numbers (11-digit, pre-fix 902 or 910) and “Elite” with direct Moscow numbers (7-digit numbers), effectively leave behind all the latest offers on the mobile market.

"Avant-Guard" tariff plan has superceded "Youth" tariff, which becomes obsolete as of November 1, 2001. "Youth" tariff plan was MTS’ most popular tariff with federal numbers for a long time. From now on youngsters, who need mobile communications not only during the day, but also in the morning, in the evening and at night, will be able to enjoy MTS’ new competitive offer, now available round-the-clock. The per minute call cost to fixed line phones under "Avant-Guard" tariff plan is now 181 cents during the day, 161 cents in the morning and in the evening, and only 81 cents at night. The periods; with reduced rates have also been extended - the evening period by two hours and the night period by one hour. This means that "evening" time now starts at 7pm and "night" lasts till 7am for MTS subscribers using this tariff plan.

Mobile-to-mobile outgoing calls within the MTS network have also become cheaper. Under "Avant-Guard" tariff the cost of such outgoing call is 121, 101 and 41 cents, depending on the time of the call, that means discounts from 33% to 50%. Hence, MTS subscribers can now save on making calls not only to MTS subscribers in Moscow, but also to MTS subscribers, who live in the Tula, Kaluga, Pskov, Ryazan, Vladimir, Smolensk, Tver, Kostroma, Yaroslavl, Nizhny Novgorod, Kirov regions and Komi Republic. The cost reduction, available on the "Oblast" tariff zone, has been preserved in the new tariff. When MTS subscribers leave Moscow for the Moscow region, Vladimir, Ryazan, Tula, Kaluga or Pskov regions, they will pay only 121, 111 and 61 cents per minute depending on the time of the call for calls to Moscow fixed line phones. The subscription fee for "Avant-Guard" tariff is 51 USD.

The other new tariff plan "Elite" has evolved from the "Favorite" plan, which used to be the most popular tariff for business people. It has now been revamped. "Elite" is of great interest to subscribers, who travel, talk a lot, do not stay at home, and lead busy working and social lives. MTS subscriber with a prestige Moscow direct number will now pay only 241 cents during the day, 201 - in the evening and 121 cents at night. Calls made during public holidays and weekends will be charged only 201 cents at daytime (from 6:00 to 00:00) and 121 cents at night (from 00:00 to 6:00). While calling from mobile to mobile the cost is even lower: 161, 131 ? 61 cents accordingly. The subscription fee is 141 USD.

Both tariffs feature per second charging after the first minute of the call. Subscription fee for both "Avant-Guard" and "Elite" covers practically all the prime services: international access, national and international roaming (it covers within the MTS network 600 cities in Russia and 93 countries worldwide), call forwarding, call waiting, voice mail, and sending and receiving SMS messages. Additionally under both tariff plans the cost of the "Itemized invoice" service has been significantly reduced: the cost of a single invoice is down to 11 USD, the cost of a monthly invoice is down to 501 cents.

Commenting on the launch of the new tariffs, MTS’ Marketing Director Igor Timofeev said: "Since MTS launched its "hit" tariff plans "Youth" and "Favourite" over 18 months ago, the mobile communications market has changed significantly. We, ourselves, have also changed. Our results are impressive: an unprecedented subscriber growth, successful cooperation with the leading providers of equipment and communications channels. We have succeeded in optimizing our costs and are now focusing on helping our subscribers to cut costs. MTS now offers round-the-clock unique mobile services to all the people who constantly need mobile communications.

This is true not only for very low per minute cost and the flexibility of services provided by the new tariffs, but also for reduced costs, now available within MTS’ pan-Russian network coverage zone. When a user subscribes to MTS network, he (she) becomes a subscriber of the pan-Russian network that links practically all the regions of the European part of Russia as well as the largest regions of the Urals, Siberia and the Far East. Thus, MTS subscriber receives benefits, which are not offered by any other GSM operator in Russia".

Other MTS marketing initiatives are also coming into force as of November 1, 2001. MTS now offers free incoming calls made from MTS phones to phones of MTS subscribers who use the "Active" tariff plan.

In the near future corporate users will also be able to cut costs of making calls.


The above prices in this press release are exclusive of VAT and sales tax.

For further information contact:

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

Investor Relations department
tel: +7 (095) 766-01-03
Fax: +7 (095) 766-01-00

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 statements 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 our most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form 20-F, 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 46 regions of the Russian Federation, covering 86 million people or 56% of the country’s population. MTS network has operations in 26 regions, which cover more than 55,6 million people or 38% of the population of the Russian Federation.
Additional information about MTS can be found on MTS’s website at




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