MOSCOW, RUSSIAN FEDERATION — JULY 6, 2006 — MOBILE TELESYSTEMS OJSC («MTS» — NYSE: MBT), THE LARGEST MOBILE PHONE OPERATOR IN RUSSIA AND THE CIS, ADVISES THAT ANY TRANSACTIONS INVOLVING BITEL ARE ILLEGAL.

In light of the information in the media regarding the decision by the unlawfully appointed management of Bitel to sell off its assets, MTS would like to inform any participants in this transaction that we reserve the right to institute legal proceedings against them.

MTS considers the control over Bitel by Reservspetzmet as being illegal, and the Company continues to successfully defend its rights in courts.

Therefore, given the fact that Reservspetzmet had illegally taken control of Bitel, any operations involving Bitel, including those involving all or some assets of the company, have no legal effect and will be contested in court.

Continuing to defend its rights over Bitel in courts, MTS will inform the public on a regular basis of the progress made in the legal proceedings.