Moscow, Russian Federation – MTS PJSC (the “Company” – NYSE: MBT, MOEX: MTSS), the leading telecommunications operator and digital service provider in Russia, and Vodafone Group Plc, one of the world’s largest telecommunication companies, announce the extension of their 2008 strategic partnership agreement. In addition to the existing cooperation in procurement, technology and marketing, the companies agreed that Vodafone will assist MTS with its digital business transformation, as well as the development and market launch of innovative MTS solutions and products.

Under the agreement, MTS will maintain access to Vodafone’s knowledge, expertise and products until the end of 2020. The agreement will also provide an opportunity to exchange best practice examples in new key areas such as digital transformation of internal technological, business and organizational processes, as well as acceleration of product market launch process.

Since 2008 the partnership with Vodafone provides MTS with access to best-in-class product portfolio and marketing research, and helps MTS to promote its products and services. At the same time, Vodafone’s expertise assists MTS in building up-to-date network, participating in global software and IT equipment purchase programs as well as getting access to global marketing services.

Alexander Gorbunov, Vice President, Strategy and Development, MTS, commented:

“Our strategic partnership with Vodafone has proved to be very efficient – it helped us to save a considerable amount of time and resources when building networks and launching new products, ultimately strengthening MTS’ position in our markets. At the current technological stage, this new step in our cooperation opens for MTS a way to accelerate our digital transformation as well as to improve our business efficiency both quantitatively and qualitatively through access to Vodafone’s expertise and know-how.”

Diego Massidda, Chief Executive of Partner Markets, Vodafone, commented:

“We are delighted to continue our partner market agreement with MTS, the leading telecommunications provider in Russia. Our cooperation with MTS is not only a mutually beneficial strategic partnership, but also a good example of how shared best practice can improve the experiences of both companies’ consumer and enterprise customers through implementation of up-to-date digital technologies.”

* * *

For further information, please contact in Moscow:

Investor Relations Department 
Mobile TeleSystems PJSC 
Tel: +7 495 223 2025 
E-mail: ir@mts.ru