Hyderabad, India - 11 May, 2010. - Mobile phone subscribers in Andhra Pradesh will now be able to call any local number across the State at a promotional offer of half-a-paisa per second. MTS, the mobile telephony services brand of Sistema Shyam Teleservices Ltd (SSTL) has launched its services in Andhra Pradesh promising the best value proposition for its subscribers from among existing operators and competition. The MTS to MTS charges within Andhra Pradesh will be one paisa for four seconds.

With its presence in Andhra Pradesh, MTS completes the roll out of its services in all the four South Indian States. Andhra Pradesh will be the 12^th telecom circle which MTS is entering with its bouquet of services. All major cities and towns in the State are already covered by MTS for mobile internet connectivity in the first phase of launch itself. A total of 557 of towns will also buzz with MTS phones. Complete national roaming facility is extended to the customers in the State.

With the launch in Andhra Pradesh, MTS voice and data services are now available in 6 largest metro cities of India. MTS services across India have gained popularity for its superior network quality and  affordable pricing. MTS voice and data services are available across India through national roaming arrangements.

Mr. Vsevolod Rozanov, President and Chief Executive Officer, Sistema Shyam Teleservices Limited (SSTL) said, “With the launch of MTS in Andhra Pradesh, we are not only covering the 6^th urban centre of India, but all the four Southern States. MTS subscribers in South India can roam seamlessly and enjoy the benefits of MTS to MTS subscriber offers fully.”

Mr. Suresh S. Kumar , Chief Operating officer of Karnataka & Andhra Pradesh, said “MTS in Andhra, will have  its network presence across the State from the first day of  the launch, giving the subscribers the  benefit of  our  special offers between  MTS to MTS calls. With our presence in 557 towns in the State, we hope to reach subscribers through our Branded stores and mass retail outlets with an aggressive strategy for tapping the mass market as well as corporate customers.”

About Sistema Shyam TeleServices Limited

Sistema Shyam TeleServices (SSTL) is a joint venture between Sistema {LSE: SSA} of Russia and the Shyam Group of India. Sistema is the majority share holder in this joint venture with a 74% equity stake, along with the Shyam Group holding a 23.5% stake and the remaining 2.5% being publically held. SSTL has spectrum to provide mobile telephony services in all the 22 circles across the country.