Moscow, Russian Federation — April 20, 2004 — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and Ukraine, announces the redemption of its $300,000,000 Floating Rate Notes on May 5, 2004.
MTS will redeem all of its outstanding US$300 million one-year unsecured Rule 144A/Regulation S Floating Rate Notes. The notes will be redeemed on May 5, 2004, at 100% of their principal amount, plus accrued interest thereon to the redemption date. The principal amount and interest of all notes to be redeemed shall become due and payable on the redemption date. Interest upon the principal amount of the notes shall cease to be payable from and after the redemption date.
Payment of the redemption price of the notes will be made upon presentation and surrender of such notes at the following payment agents:
The Trustee: JPMorgan Chase Bank 4 New York Plaza 15th Floor New York, New York 10004 Facsimile: +1 212 623 6216/5 With a copy to facsimile: +44 1202 34 7438
The Luxembourg Paying Agent: J. P. Morgan Bank Luxembourg S. A. 5 Rue Plaetis L-2338 Luxembourg Facsimile: +352 4626 85380
The notes were issued on August 5, 2003, 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. JPMorgan Chase Bank, a New York banking corporation, is trustee for the issue. The notes mature on August 5, 2004, and have a quarterly coupon payable at 3-month Libor plus 4%. The notes were issued at 99% of their nominal principal amount and carry a call option in 6 and 9 months. The notes were offered and sold to non-U.S. persons outside the United States in offshore transactions in compliance with Regulation S of the U. S. Securities Act and in the United States to “qualified institutional buyers” in compliance with Rule 144A of the U. S. Securities Act. The notes are listed on the Luxembourg Stock Exchange.
For further information contact:
Mobile TeleSystems, Moscow Investor and Public Relations Andrey Braginski tel: +7 (095) 911-65-53e-mail: ir@mts.ru
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Mobile TeleSystems OJSC (or “MTS”) is the largest mobile phone operator in Russia and Ukraine. Together with its subsidiaries, the company services over 19.2 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 200.6 million. Since June 2000, MTS’ shares have been listed on the New York Stock Exchange with the ticker symbol MBT. Additional information about MTS can be found on MTS’ website at www.mtsgsm.com.
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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.
