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Mobile TeleSystems

November 20, 2001

MTS and Siemens carry out the first succesful UMTS voice call in Russia

Moscow, Russian Federation — 20 November, 2001 — Mobile TeleSystems OJSC (NYSE: MBT), Russia’s largest GSM 900/1800 mobile operator, and Siemens Information and Communication Mobile (IC Mobile) have carried out the first UMTS voice call in Russia at the UMTS test network in Moscow.

In line with the live demonstration, the mobile terminal devices were connected amongst themselves and with ISDN phones.

The MTS test network includes a full range of features of the UMTS network, in which the core and radio access networks operate using industrial equipment. Unlike a «box option» used by operators to test new technologies, the comprehensive solution adopted by MTS, allows MTS specialists to receive full value data on how the UMTS network functions and inter-operates with GSM and fixed line operators.

The MTS test network currently includes a circuit switching and packet oriented switch, a controller and three UMTS base stations. The network is expected to become the central network for carrying out — together with research institutes of the Russian Ministry of Communications — tests, which will be undertaken to solve a number of technical issues, including the allocation of radio frequencies for UMTS networks.

Commenting on the event, MTS Technical Vice-President, Dr. Jury A. Gromakov said: «By carrying out the first UMTS voice call, we have demonstrated once again that MTS is at the leading edge in the development of some of the most sophisticated technical tasks. Developing up-to-date technologies is not only of great interest for hi-tech companies but also essential for their development. In order to achieve this aim, huge intelligence and moral efforts are required, in addition to large financial investments. We are delighted with the success gained so far towards solving such sophisticated tasks.»

3G mobile networks will provide for higher transfer rates, and will also provide users with access to a wide range of new multimedia services.

«The success of the first UMTS test voice call in Russia demonstrates that MTS, together with European leading operators, is on the correct path towards 3G communications, and proves the fact that 3G technologies can realistically be launched in the near future, — said Mr. Raymond Armes, President of IC Mobile Russian department, — We are very pleased with the cooperation between our two companies in the GSM world, which started in 1994 and is successfully continuing in the UMTS world.»

While making the first UMTS call, MTS used 3G phones produced by NEC. Data transmission among mobile terminal devices was carried out on-line through UMTS radio interface (UTRAN FDD) by using UMTS base stations (Node B) and a controller (RNC) produced by Siemens.

For further information contact:

Eva Prokofieva
Press Secretary
tel: +7 (095) 104-49-38

Investor Relations department
tel: +7 (095) 766-01-03
Fax: +7 (095) 766-01-00

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 26 regions, which cover more than 55,6 million people or 38% of the population of the Russian Federation.
Additional information about MTS can be found on MTS’s website at




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