Mobile Telesystems Ojsc (MBT)

[MadeIt]

MTS and Nokia Enter Strategic Partnership





MOSCOW, June 5 /PRNewswire-FirstCall/ -- 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.

Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 93.03 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.