Moscow, Russian Federation — June 28, 2006 — Mobile Telesystems OJSC («MTS» — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces the decisions made at the Annual General Meeting (AGM) of the Company’s shareholders on June 23, 2006.

The Meeting adopted the following resolutions:

· To pay an annual dividends of RUR 7.6 per ordinary MTS share (approximately $1.4 per ADR¹) for the 2005 fiscal year, amounting to a total of RUR 15.15 billion ($561.98 million²). Dividends should be paid  out before the end of 2006.

·  To pay an annual dividends of RUR 7.6 per ordinary MTS share (approximately $1.4 per ADR¹). Dividends should be paid out before the end of 2006.

·  To elect the following persons to the MTS Board of Directors (BoD):

• Alexey Buyanov, Senior Vice President, Sistema;
• Alexander Gorbunov, Head of the Corporate Development Department, Sistema;
• Vladimir Lagutin, Member of the Board of Directors of Sistema and Sistema Telecom;
• Leonid Melamed, President and CEO of MTS;
• Sir Peter Middleton GCB, independent member of MTS’ BoD;
• Helmut Reuschenbach, independent member of MTS’ BoD;
• Sergey Schebetov, General Director, Sistema Telecom.

The number of the BoD remains unchanged from last year.

·  To approve the Statute on the Audit Commission.

·  To approve CJSC Deloitte and Touche CIS as MTS’ auditor.

·  To approve a new version of MTS’ Charter, the new version of the Statute on the President of MTS whereby the President shall be elected by the BoD by a majority of votes of its elected members, the new version of the Statute on the Board of Directors and the new version of the Statute on the General Meeting of Shareholders.

«The AGM approved the recommendation of the BoD with respect to the distribution of the Company’s profits for full year 2005, whereby the annual remuneration of the BoD members was lowered by more than three times. I welcome this decision of our shareholders as it fully reflects MTS’ new corporate governance policy that is aimed at increasing the efficiency of profit distribution and cost optimization,» highlighted Sergey Schebetov, the Chairman of the Company’s BoD.

The Board of Directors meeting took place on the same day and re-appointed Sergey Schebetov as Chairman and Vladimir Lagutin as Deputy Chairman of the Board of Directors. Independent directors Helmut Reuschenbach and Sir Peter Middleton were appointed to the Company’s Audit Committee along with Alexey Buyanov, who will have non-voting «observer» status on the Audit Committee.

¹ According to the Russian Central Bank exchange rate of 26.9569 RUR/$ as of May 18, 2006.

² The amount is 50% of net income under US GAAP.