Moscow, Russian Federation – August 7, 2003 – On August 5, 2003 Mobile TeleSystems OJSC (“MTS” - NYSE:MBT) completed the offering of US$300 million 1-year unsecured 144A/Regulation S Floating Rate Notes in the international debt capital markets.

The notes were issued through MTS’ 100% beneficially-owned subsidiary, Mobile TeleSystems Finance S.A., a company organized under the laws of Luxembourg, and are guaranteed by MTS.  The notes will mature on August 5, 2004 and have a coupon payable quarterly at 3-month Libor plus 400 bps.  The notes were issued at 99% of their nominal principal amount and carry a call option in 6 months and 9 months.  The notes were offered and sold to non-U.S. persons outside the United States in offshore transactions in reliance on Regulation S and in the United States to “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act) in reliance on Rule 144A.

The notes are listed on the Luxembourg Stock Exchange.

The proceeds will be usedprimarily for the acquisition of minority interests in certain of MTS’ subsidiaries, for potential acquisitions of mobile operators in various regions of Russia and for the repayment of a loan MTS obtained to finance the acquisition of mobile operators in various regions of Russia.

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Mobile TeleSystems OJSC (or "MTS") is the largest mobile phone operator in Russia in terms of subscribers. Together with its subsidiaries, the company services over 12 million subscribers. The regions of Russia as well as in Belarus and Ukraine in which MTS and its subsidiaries are licensed to provide GSM services have a total population of approximately 169.2 million. Since June 2000, MTS' shares have been listed on the New York Stock Exchange with the ticker symbol MBT.

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These materials are not an offer for sale of the notes in the United States. The notes may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.  Mobile TeleSystems OJSC has not registered and does not intend to register any portion of the offering in the United States or to conduct a public offering of notes in the United States.

This communication is directed only at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as “relevant persons”).  The notes are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such notes will be engaged in only with, relevant persons.  Any person who is not a relevant person should not act or rely on this document or any of its contents.  Stabilization/FSA.

This press release is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.

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. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions.  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 reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. 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 20-F. 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.

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For further enquiries contact:

Mobile TeleSystems, Moscow

Public and Investor Relations                                                tel: +7095 911 6553

Andrey Braginski                                                            e-mail: ir@mts.ru

Gavin Anderson & Company, London

Halldor Larusson                              tel: +44 (0) 20 7554 1400