OREANDA-NEWS. On 21 May 2008 Mobile TeleSystems OJSC, the largest mobile phone operator in Russia and the CIS, announced the recommended amount of dividends for the full year 2007.

On May 19, 2008, MTS’ Board of Directors (BoD) recommended the annual general meeting of shareholders (AGM) approve annual dividends of RUR 14.84 per ordinary MTS share (approximately \\$3.12 per ADR1 ) for the 2007 fiscal year, amounting to a total of RUR 29.58 billion (\\$1,242.9 million) or 60% of US GAAP net income. 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 May 8, 2008. The AGM will be held on June 27, 2008.

The Company’s dividend policy adopted in 2007 targets 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.

The Chairman of MTS’ BoD, Vitaliy Savelyev, commented: “The dividend amount is a clear sign of MTS’ commitment to enhancing shareholder value. The rewards enjoyed by our shareholders have historically grown inline with the scale and profitability of our business. We endeavor to continue rewarding our shareholders by continuing to employ a sound financial policy and running profitable and efficient operations.”

1 According to the Russian Central Bank exchange rate of 23.7939 RUR/\\$ as of May 5, 2008.