OREANDA-NEWS. The Board of Directors of Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the largest mobile phone operator in Russia and the CIS, recommended the annual general meeting of shareholders (AGM) approve annual dividends of RUR 9,67 per ordinary MTS share (approximately $1,87 per ADR) for the 2006 fiscal year, amounting to a total of RUR 19,28 billion ($747,44 million).

As announced earlier, the record date for the Company’s share- and ADR-holders entitled to participate in the AGM and to receive dividends was set for May 14, 2007. The AGM will be held on June 29, 2007.

The BoD also approved a dividend policy, whereby the Company will target a return of a minimum of 50% of annual US GAAP net income to its shareholders through dividend payments.

The amount could vary depending on a number of factors, including the outlook for earnings growth, capital expenditure requirements, cash flow from operations, potential acquisition opportunities as well as the Company’s debt position.