Moscow, Russian Federation — August 29, 2006 — Mobile Telesystems OJSC («MTS» — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces new appointments made as part of the company’s reorganization of the management structure.

As part of implementing the Company’s new management structure that was approved by the BoD on August 14, 2006, the managerial staff list was reorganized.

The position of Vice President, Director of Business unit «MTS Russia» has been created. Mr. Mikhail Shamolin, who was previously the Vice President for Sales and Customer Service, was appointed to this position and will report directly to the President of MTS.

The following will report directly to the Head of Business unit «MTS Russia», Mr. Mikhail Shamolin:

• directors of all branches (macro-regions) of MTS¹;
• Chief Marketing Officer of Business unit «MTS Russia», Garrett Johnston;
• Deputy Director for Technical Matters and IT of Business unit «MTS Russia», Mr. Andrei Ushatsky;
• Deputy Sales Director of Business unit «MTS Russia», Mrs. Maria Chinkova;
• Director for Regional Management of Business unit «MTS Russia», Mr. Viacheslav Nikolaev;
• Director of Human Resources Department of Business unit «MTS Russia», Ms. Natalya Strelkova;
• Director of Customer Service Department of Business unit «MTS Russia», Mr. Vladislav Pozdyshev.

BIOGRAPHIES:

Mr. Mikhail Shamolin
Mr. Shamolin was born in 1970. Graduated from the Moscow State Automobile and Road Construction Institute in 1992. In 1993 Mr. Shamolin received a second degree from the Russian Academy of State Service of the President of Russian Federation. In 1996-97 he completed an executive program in Finance and Accounting at the University of Pennsylvania?s Wharton School of Business. Mr. Shamolin worked at McKinsey&Co. from 1998 to 2004. From 2004 to 2005 he worked at Interpipe Corp. (Ukraine) as Managing Director of the Ferroalloys Division. Joined MTS in 2005 as Vice President for Sales and Customer Service. Married, has a daughter.

Mr. Garrett Johnston
Mr. Johnston was born in 1968. Has university degrees from the University of Dublin in economics and from the Trinity College of Dublin in international commerce. From 1991 to 2003 worked in management in the area of marketing for a number of international corporations, such as Cap Gemini, Ernst & Young, Cable & Wireless, PricewaterhouseCoopers, Alcatel and MCI WorldCom. Prior to joining MTS, worked from 2003 to 2006 as the Chief Marketing Officer of Kyivstar, one of the largest mobile phone operators in Ukraine, at the time he was also a consultant for Telenor in Norway in the matters of corporate marketing strategy. Director of Marketing at MTS from February 2006. Fluently speaks eleven languages. Married, has a daughter and a son.

Mr. Andrei Ushatsky
Mr. Ushatsky was born in 1974. Graduated from the Moscow Power Engineering Institute (Technical University) in 1997. From 2002 to 2004 completed an MBA program for managers at the Academy of National Economy of the Government of the Russian Federation. From 1996 working at MTS. Married, has two sons.

Mrs. Maria Chinkova
Mrs. Chinkova was born in 1966. Graduated from Moscow Aviation Institute (State University of Aerospace Technologies), school of radio electronics in 1990. Received an MBA in 2006 from the Academy of National Economy of the Government of the Russian Federation, school of Corporate Management, under the «Euro-management — Master of Business Administration for managers» program. From 1989 to 1994 worked for various companies. Joined MTS in 1994 as a regular employee in the customer service department. Headed the key accounts group in 2004. Married, has a son.

Mr. Viacheslav Nikolaev
Mr. Nikolaev was born in 1970. Graduated from the Moscow State University, Faculty of Computational Mathematics and Cybernetics in 1992. In 1994 completed management courses at The Krieble Institute, Washington, DC. From 1994 to 1999 worked at an international consulting company European Public Policy Advisers as the senior consultant. From 1999 to 2000 worked at J’son and Partners, a telecommunications consulting company, as a consultant. From 2000 to 2003 worked at Renaissance Capital investment bank as a telecommunications analyst. From 2003 to 2004 worked at Trust investment bank as Vice President in the equity research department. Joined MTS at the end of 2004, first in the Investor Relations Department and then as head of Planning and Analysis group of the Sales and Customer Service Department. From the beginning of 2006 acting Director of Operational Technologies Department. Married, has a son.

Ms. Natalya Strelkova
Ms. Strelkova was born in 1969. Graduated from the Moscow Engineering Physics Institute (State University) in 1992. Received her second degree in 1997 from the Moscow State University, Faculty of Psychology. From 2001 to 2004 worked at Yukos and was responsible for recruitment, development and appraisal of personnel and headed the corporate employee appraisal center. From August 2004 Head of Human Resources Strategy Department at MTS. Has two children.

Mr. Vladislav Pozdyshev
Mr. Pozdyshev was born in 1970. Graduated from the Department of Economics of St. Petersburg State University in 1992. From 1993 to 1997 headed Reebok Russia?s Branch in St. Petersburg. From 1997 to 2003 worked at Mary Kay where he made his career consequently holding positions of General Manager, Russia North-West, then General Manager, Ukraine, and finally Vice President, Western Europe. From 2003 to 2005 acted as an independent business consultant. Joined MTS in the summer of 2005 as a Project Director in charge of macro-regional contact centers consolidation and development. Appointed as Director, Customer Care Department, Corporate Center in September 2005. Married with two daughters.

¹ Director of macro-region «Moscow», Ms. Svetlana Shamzon, director of macro-region «Center», Mr. Konstantin Markov, director of macro-region «North-West», Mr. Ivan Zolochevsky, director of macro-region «Ural», Mr. Andrei Dubovskov, director of macro-region «Sibir», Mr. Aleksander Marishin, director of macro-region «Povolzhye South-East», Mr. Marat Ayupov, director of macro-region Povolzhey «North-West», Mr. Aleksander Popovsky, director of macro-region «Far East», Mr. Dmitry Lapitsky, director of macro-region «South», Mr. Dmitry Vitchinka, and director of macro-region «South-West», Mr. Leonid Denisov.