Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces the launch of the first phase of its 3G network in Moscow. The first indoor network was launched in Expocentre, one of the largest exhibition centers in Eastern Europe.

MTS has covered the whole Expocentre exhibition space with the next-generation network, providing customers with faster data download speeds of up to 3.6 Mbit/s using the HSPA technology.

MTS is planning to launch additional 3G networks in 35 largest business and shopping centers in Moscow in 2009, including the Domodedovo International Airport. MTS will also launch indoor 3G networks in the offices of the largest corporations based in Moscow. 3G services will also become available in several cities in the Moscow region, including Noginsk and Orekhovo-Zuyevo.

MTS has also received permission to deploy 3G networks in the Moscow metro. The first test network will be launched on the Sokolnicheskaya line.

Development of 3G networks is a cornerstone of MTS’ strategy aimed at providing mobile broadband in the CIS. As these markets demonstrate relatively low levels of fixed-line penetration and historic underinvestment in infrastructure, MTS views its networks as an ideal vehicle to meet the growing broadband Internet needs of its subscribers through attractive data products and services.

MTS already operates 3G networks in Russia, Uzbekistan and Armenia and offers high-speed data access through its proprietary CDMA-450 network in Ukraine.