Vassily Sidorov was nominated as the new President and Chief Executive Officer of MTS at a meeting of MTS’ Board of directors held on August 11, 2003.  Mr. Sidorov’s candidacy will be voted upon at an extraordinary shareholders meeting to be held on October 25, 2003.  The Board also named Mr. Sidorov acting President of MTS from September 1.  Mikhail Smirnov, the Company’s current President, will continue in his role until that date to ensure a smooth transition. 

Mr. Sidorov is currently the First Deputy General Director for Finance and Investments at Sistema-Telecom, the telecoms arm of AFK Sistema, a majority shareholder in MTS.  He has been on the Board of MTS since 2002.  Before joining Sistema-Telecom in 2000, Mr. Sidorov served as the Deputy General Director for Finance (CFO) of Svyazinvest, a state-controlled holding company for local fixed-line operators and Rostelecom.

Commenting on his nomination, Mr. Sidorov said: “The management change does not imply a change in the Company’s strategy.  Our top priorities are to strengthen our leadership in markets where we currently operate, as well as to continue expanding into new markets where we can generate value.  I look forward to continuing the excellent work done by Mikhail Smirnov and the rest of the management team who have built MTS into the largest mobile phone operator in the region and one of the few Russian companies listed on the NYSE.  In addition, we will continue and strengthen the company’s focus on operational efficiency, customer orientation, and financial transparency.”

Michael Guenther, Member of the Board of T-Mobile International and Co-Chairman of MTS’ Board, said: “I am very pleased to recommend Vassily Sidorov’s appointment to the shareholders.  I have been working with Mr. Sidorov in his current capacity for several years and know him as one of the most talented managers in Russia.  His experience, particularly in the telecoms industry which he has accumulated over the past 6 years, will enable him to make a meaningful contribution to the Company.”

Alexey Buyanov, the First Vice-president of AFK Sistema and an MTS Board member, said: “MTS faces the challenging task of further integrating its operations and expanding its business. Mr. Sidorov has solid experience in the management and consolidation of large telecommunications businesses.”

Biography

Vassily Sidorov joined Sistema Telecom as First Deputy General Director for Finance and Investments in August 2000.  In this position he has been responsible for the M&A, corporate finance and investment affairs of the company.  Mr. Sidorov has served as an MTS Board member since 2002.  Prior to joining Sistema Telecom Mr. Sidorov served as Deputy General Director/CFO of Svyazinvest holding from 1997.  From 1994 to 1997, he owned and managed several companies specializing in investment and M&A advisory, as well as equity and fixed-income trading.  His previous professional experience includes various positions in Barents Group LLC, a corporate finance advisory arm of KPMG Peat Marwick in Washington, D.C., Arthur Andersen in Moscow, and the New York Mercantile Exchange.

Vassily Sidorov is a graduate of the Wharton School of Business of the University of Pennsylvania and of the International Law Faculty of the Moscow State International Relations Institute.

Vassily Sidorov was born in 1971.  He is married with one daughter.

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Mobile TeleSystems OJSC (or "MTS") is the largest mobile phone operator in Russia in terms of subscribers. Together with its subsidiaries, the company services over 12 million subscribers. The regions of Russia as well as in Belarus and Ukraine in which MTS and its subsidiaries are licensed to provide GSM services have a total population of approximately 169.2 million. Since June 2000, MTS' shares have been listed on the New York Stock Exchange with the ticker symbol MBT. Additional information about MTS can be found on MTS' website at www.mtsgsm.com.

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These materials are not an offer for sale of any securities in the United States.  Any securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.  Mobile TeleSystems OJSC has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.

This press release is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.

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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. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions.  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 reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically, the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors," 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.

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For further information contact:

Mobile TeleSystems, Moscow

Investor and Public Relations                                                            tel: +7095 911 6553

Andrey Braginski                                                                        e-mail: ir@mts.ru

Gavin Anderson & Company, London

Halldor Larusson / Louisa Hollins                                            tel: +44 (0) 20 7554 1400