Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, and Nokia signed the memorandum of understanding on the direct delivery of Nokia devices to MTS’ retail network. The first joint project of the two companies will be the priority sales launch of Nokia N97, Nokia's flagship mobile computer, equipped with exclusive software from MTS.

The agreement signed by MTS and Nokia at the 2009 St. Petersburg International Economic Forum provides for the direct supply of Nokia products to MTS’ retail network, joint marketing campaigns to promote Nokia’s handsets and a special training program for MTS’ retail employees.

“This partnership agreement with Nokia is a milestone in our development of the MTS proprietary retail network. Teaming up with the world's leading maker of mobile devices will allow us to further differentiate MTS' retail network by matching cutting-edge products with tariff plans to enhance customer experience and spur the growth of data usage by our subscribers,” noted Mr. Mikhail Shamolin, President and CEO of MTS.

“Nokia N97 is the flagship product which has no analogues in the world. For the first time in Russia, Nokia is launching such an important device in partnership with the largest mobile phone operator, MTS. Together with MTS, we have developed applications and widgets tailored to the Russian users,” noted Mr. Niels Nielsen, Director-General of Nokia in Russia. “The primary difference of N97 from the currently available smartphones is not just the availability of touch display and QWERTY keyboard on one device, but the fact that it is a mobile computer with a range of applications that allow individual customization of the handset.”

MTS has developed a number of branded applications for Nokia N97 aimed at business users that will be distributed on a free 2 GB micro-SD memory card. The sales of Nokia N97 will start on June 17 in all MTS stores in Moscow and in the flagship Nokia store. By the end of the month, the device will become available to subscribers of all mobile operators through the MTS retail network in Russia and the 30 Nokia stores in the largest Russian cities.