MOSCOW, October 6 /PRNewswire-FirstCall/ -- Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces the launch of a test zone of its UMTS (3G) network in Uzbekistan and technical readiness for commercial launch in late 2008.

Tashkent, the capital of Uzbekistan, became the first city in the region where MTS launched its next-generation network. The Company plans to cover the entire city and to announce the commercial launch by the end of the year. Additional cities will be launched in 2009, including Samarkand, Bukhara, and Andijan.

Huawei Technologies, a world-leading telecom solutions provider, was selected by MTS to provide 3G equipment, as well as technical support and employee training.

"MTS is the leading mobile operator in Uzbekistan and plays a key role in the development of the country's telecommunications market. With the launch of our 3G network, we will bring the most innovative mobile products and services to our subscribers along with the high quality of customer service," said Mr. Bekhzod Akhmedov, Head of MTS Uzbekistan. "Given the low penetration level of fixed internet connections, we see great prospects for growth by delivering mobile broadband solutions through our 3G network."

Development of UMTS networks is a cornerstone of MTS' strategy to provide mobile broadband in the CIS. As these markets demonstrate relatively low levels of fixed-line penetration and historic underinvestment in infrastructure, MTS views its networks as an ideal vehicle to meet the growing broadband Internet needs of its subscribers through attractive data products and services.

MTS launched its first 3G network in Russia in May 2008 and plans to launch the network in Armenia in early 2009. MTS is currently operating a CDMA-450 network in Ukraine to provide high-speed data access for its clients.

Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 87.26 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 http://www.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: ir@mts.ru

SOURCE Mobile TeleSystems OJSC