July 9, 2008

MTS, Microsoft and Fujitsu Siemens Computers Partner to Deliver Mobile Broadband to the CIS

MOSCOW, July 9 /PRNewswire-FirstCall/ -- Russian Federation - Mobile TeleSystems OJSC ("MTS") , the largest mobile phone operator in Russia and the CIS, Microsoft, the worldwide leader in operating systems and productivity software, and Fujitsu Siemens Computers, Europe's leading developer of IT systems, today announced the launch of the first integrated 3G notebook solution in the CIS. The companies collaborated to deliver a 3G-enabled Fujitsu Siemens notebook running on the Microsoft Vista operating system with an embedded SIM card and a special data tariff plan from MTS.

The new notebook from Fujitsu Siemens Computers features a 3G modem that supports both the HSDPA mobile communications technology with data speeds up to 3.6 Mbit/s and the widely available GPRS / EDGE data networks. The notebook will be available from August 1, 2008, and all customers that buy the notebook in August will receive 100Mb data packages for free on a monthly basis for the following four months.

The notebook, developed by MTS, Microsoft and Fujitsu Siemens Computers, will be sold initially in Moscow, followed by the four cities where MTS already launched its 3G network: St. Petersburg, Kazan, Yekaterinburg and Sochi.

"The rapid deployment of 3G networks brings true mobile broadband access to our subscribers," said Mrs. Cynthia Gordon, Chief Marketing Officer at MTS. "We are very optimistic about the prospects of mobile broadband in Russia and the CIS with MTS leading the market in offering solutions for broadband access on the go. We are eager to partner with leading global vendors to offer the first integrated mobile broadband solution in Russia, to capitalize on trends that suggest strong growth in data usage for years to come."

"Fujitsu Siemens Computers became the first company to launch notebooks with integrated 3G modems in Russia," noted Mr. Tony Rozwadowski, vice president for Central and Eastern Europe at Fujitsu Siemens Computers. "As 3G networks are becoming available in the key regions of Russia, our customers will have broadband access on the go at unprecedented speeds. By partnering with Microsoft and MTS, we are offering our customers mobile broadband access across the largest mobile network in Russia and the CIS."

"The latest technology from Microsoft brings to life the full potential of 3G networks in a simple and easy way. As this is the first integrated 3G notebook project in Russia, our customers will particularly appreciate its user friendliness, which makes this solution not only attractive to our customers but also promotes 3G communications in Russia," said Mr. Birger Steen, GM of Microsoft Russia.

The joint solution from MTS, Microsoft and Fujitsu Siemens Computers has been developed within the framework of the mobile broadband strategy that MTS announced at the Mobile World Congress in Barcelona in February 2008. This framework includes the development of portable devices with preinstalled software as well as imbedded solutions for mobile broadband access through the MTS network.

Currently, MTS subscribers can access 3G networks in Saint Petersburg, Kazan and through roaming points abroad. MTS has also announced 3G network readiness in Sochi and Yekaterinburg, where the commercial launch is imminent, and plans to launch additional 3G networks in over 10 cities in Russia during 2008.

Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 86.3 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS can be found on MTS' website at www1.mtsgsm.com.

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," and 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 and the CIS, volatility of stock price, financial risk management and future growth subject to risks.

   For further information, please contact:   Mobile TeleSystems, Moscow Investor Relations   Tel: +7-495-223-2025  

E-mail: [email protected]

Mobile TeleSystems

CONTACT: For further information, please contact: Mobile TeleSystems,Moscow Investor Relations, Tel: +7-495-223-2025, E-mail: [email protected]