Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that its joint procurement project with Vodafone, one of the world's largest mobile communications companies, has been highly commended in the prestigious international competition, The Procurement Leaders Awards 2012.

MTS and Vodafone have implemented several projects to standardize requirements for suppliers and jointly purchase telecommunications equipment, IT equipment and consumer devices. The project’s success has enabled MTS to become the first Russian company acknowledged in the Procurement Leaders Awards competition. MTS and Vodafone were recognized in the External Collaboration category.

Valery Shorzhin, Director for Procurement at MTS, commented, "MTS is the first Russian company to be shortlisted for this prestigious international award, which is a testament to the efficiency and transparency of our procurement activities. In 2011, the partnership with Vodafone enabled MTS to realize savings in the tens of millions of dollars by sharing market expertise in procurement, increasing the total number of suppliers, and obtaining discounts from vendors. The standardization of procurement procedures and reduction in time spent to select contractors and test products has allowed MTS to bring products to market more quickly, improve customer experience, and boost the loyalty of our subscribers."

Since October 2008, MTS and Vodafone have maintained a strategic partnership to provide customers with high-quality communications services and to collaborate jointly on future technological developments. MTS has drawn extensively on Vodafone’s expertise in developing networks and mobile broadband products, deploying its retail network, working with leading global equipment providers, and applying innovative CRM practices to enhance the quality and efficiency of its business.

The Procurement Leaders Awards is one of the most highly recognized international awards in procurement sponsored by Procurement Leaders Magazine. Winners in the 12 categories this year were selected by a reputable jury consisting of senior managers from such companies as TETRA Technologies, Northern Rock, Royal Mail Group, American Airlines, AstraZeneca, American Express, BT, and Johnson & Johnson Consumer EMEA. Winners, including Kraft Foods Europe, RIM, BP & Bovis Lend Lease, HP, Kimberly-Clark Corporation, Deutsche Post, DHL, and Unilever, were chosen from 136 companies representing 27 countries.

Key projects in the MTS procurement in 2010-2012

In February 2012, MTS and HTC Corporation signed the first agreement of its type in Eastern Europe, under which they cooperate in the purchase, launch and promotion of HTC products in MTS’ markets of operation. The terms of the bilateral agreement, under the framework of the umbrella agreement between Vodafone and HTC, include the direct purchasing of HTC devices, simultaneous launch of HTC devices in Russia and internationally, and customization of software to optimize efficiency on the MTS network. The parties also plan to promote HTC innovation solutions in the Russian market.

In early 2012, MTS, Vodafone and Verizon held a joint tender for the supplying of server equipment. The result of this tender was the signing of a three-year contract with a single supplier for delivery of Intel x86 servers. MTS will use the supplier’s solutions to enhance its existing IT infrastructure to improve customer service primarily through faster processing of CRM requests and enhancing the capabilities of our billing systems.

In late 2010, MTS in partnership with Vodafone, signed an agreement with Oracle, the world's leading software developer, under which MTS has obtained the right to purchase, use, and utilize technical support of a wide range of software licenses with exclusive price conditions for all companies in the MTS Group across different markets for three years.

Currently, MTS and Vodafone are working on several joint procurement projects for a wide range of equipment for the mobile and fixed networks of MTS.