ARMENIAN VIVACELL-MTS YET TO SETTLE REBRANDING ISSUE

ARKA
Oct 16, 2008

YEREVAN, October 16. /ARKA/. The Armenian mobile operator, VivaCell-MTS
Company, has not yet settled the issue of rebranding, Andrey Terebenin,
Vice-President of the Mobile Telesystems Company (MTS) for Corporate
Communications, told ARKA.

"We are discussing the issue of rebranding the company as MTS, and our
idea is to combine the best of VivaCell and MTS," Terebenin said. He
pointed out that the priority is international experience and roaming.

He believes that customers will in any case benefit from this
innovation.

Terebenin said that MTS’ collaboration with VivaCell has brought
about positive changes, and "the company has become stronger and is
better developing" VivaCell-MTS (K-Telecom CJSC) is Armenia’s leading
mobile operator.

The company has GSM 900/1800 licenses effective until 2019. The MTS
OJSC, Russia’s leading mobile operator, holds 80% of VivaCell-MTS
stock, with the rest 20% held by Fattouch Group (Lebanon). By September
1, 2008, the VivaCell-MTS had 1.66 subscribers.

VivaCell-MTS, co-branded company, launched its activities in Armenia
as VivaCell.