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Mobile TeleSystems

December 26, 2001

MTS and Siemens have successfully carried out demonstration of the 3G network — UMTS

Moscow, Russian Federation, December 26, 2001. Mobile TeleSystems OJSC (NYSE: MBT), Russia’s largest cellular operator, and Siemens Information and Communication Mobile (IC Mobile) have successfully demonstrated an operating fragment of a 3G UMTS test network. The practical demonstration included voice calls between mobile terminal devices and between mobile terminal devices and ISDN phones, data transmission and the possibilities of 3G applications.

Commenting on the event, Alexander Krupnin, President of National 3G Association, said: “Live demonstration of an operating 3G UMTS test network carried out by Mobile TeleSystems is the final step of 3G Association’s seminars on UMTS rollout in Russia. We are now witnessing what is to become reality in the near future. MTS confirmed once again its indisputable leading position by demonstrating the real results on the real equipment. We can now announce with confidence that Russia already has a platform for working out licensing conditions”. The MTS test network is a fully functional 3G UMTS mobile network in which both the core network and the radio network operate using industrial equipment. Hardware of the kind can be used in future commercial 3G mobile networks. Practical demonstration included all main modes of operation of terminal devices in the 3G network, a stable connection was set up between mobile terminal devices and between mobile terminal devices and ISDN phones, and high-quality communication was established. The demonstration also included UMTS mobile services: mobile Internet access at a speed of 64 Kbps; location based services (interactive guide based on the City-On-Air solution developed by Siemens); video telephony using the Microsoft Net Meeting application realized by means of a pocket PDA-device, a web-chamber, a high-resolution color screen; video streaming in the MPEG4 format. For UMTS data transmission and voice calls MTS used 3G phones manufactured by NEC. Data transmission was carried out on-line through UMTS radio interface (UTRAN FDD) by using UMTS base stations (Node B), a controller (RNC) and a Core network produced by Siemens. Commenting on this, Raymond Armes, President of the Russian IC Mobile Department of Siemens said: “This demonstration is an important step in the long-term cooperation between our two companies in transferring to the 3G world. Successful demonstration of an operating UMTS test network of MTS in Russia has shown once again the possibilities and advantages of 3G mobile networks which will provide subscribers not only with higher data transmission rates but also with a wide range of fundamentally new services.”

For further information contact:

Press Secretary
Eva Prokofyeva
tel: +7095 104 4938

Investor Relations department
tel: +7095 766 0103
Fax: +7095 766 0100

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. 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 conform them to actual results. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, including our most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form 20-F, 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, volatility of stock price, financial risk management, and future growth subject to risks.

Mobile TeleSystems OJSC (NYSE: MBT) is Russia’s leading GSM 900/1800 mobile cellular operator. MTS has GSM 900/1800 licenses to provide mobile cellular telephony services in 46 regions of the Russian Federation, covering 86 million people or 56% of the country’s population. MTS network has operations in 29 regions, which cover more than 63,2 million people or 43,2% of the population of the Russian Federation.
Additional information about MTS can be found on MTS’s website at

The Siemens Information and Communication Mobile Group (IC Mobile) offers the complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers and cordless phones as well as products for wireless home networks. The infrastructure portfolio includes GSM, GPRS and 3G mobile network technologies from base stations and switching systems to intelligent networks, e.g. for prepaid services. Mobile Applications cover end-to-end solutions for Messaging, Location Based Services or Mobile Payment. For the fiscal year 2001 (September 30), IC Mobile recorded sales of EUR 11.3 billion and employed 30,730 people worldwide. You can access further information about Siemens IC Mobile on the Internet at National 3G Association was founded on December 7th, 1999. Its main objective is to coordinate the activities of its members, as well as their representation and advocacy in the sphere of innovative communication systems, including 3G networks.




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