MTS TO ACTIVATE 3G NETWORK IN ARMENIA IN 2009

ARKA
Aug 27, 2008

YEREVAN, August 27. /ARKA/. Armenia’s leading mobile operator
K-Telecom (under the VivaCell brand), subsidiary of the Russian
Mobile TeleSystems (MTS), plans to activate 3G (third generation)
network in Armenia in early 2009, the company has told RIA Novosti.

Yerevan, Gyumri and Vanadzor cities will be the first users of 3G
technologies in Armenia.

Last October K-Telecom was licensed to offer 3G and UMTS (Universal
Mobile Telecommunications System) services, including wide-brand
transmission.

MTS offers 3D services in Russia and Uzbekistan.

Last September MTS purchased 80% of the shares of the International
Cell Holding Ltd, the absolute shareholder of K-Telecom, and signed an
option agreement on the purchase of the rest of the company’s shares.

K-Telecom covers 66% of Armenia’s mobile communications market.

JSFC Sistema is 52.8% shareholder of MTS, the rest of 46.7% being
free float.