Moscow, Russian Federation — February 01, 2007 — Mobile TelesystEMS OJSC («MTS» — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that Standard and Poors has raised its outlook from stable to positive.

At the same time, the leading international ratings agency affirmed its credit rating of BB-.

In a press release circulated today, S&P wrote, «MTS benefits from a strong competitive position in its key markets, maintaining dynamic growth as well as sound EBITDA and cash flow generation. Previous strategic efforts, including changes to senior management, massive rebranding, streamlining of the corporate structure, and focus on cost optimization, have helped MTS strengthen its performance and its credit profile.»

For a full copy of the press release, please visit www.standardandpoors.com.