OREANDA-NEWS. On 03 June 2008 Mobile TeleSystems OJSC (“MTS”), the largest mobile phone operator in Russia and the CIS, announced the appointment of Mr. Mikhail Shamolin as President and Chief Executive Officer (CEO) of Mobile TeleSystems OJSC (MTS).

On May 29, 2008, MTS’ Board of Directors (BoD) in accordance with the Company’s Charter1 appointed Mr. Mikhail Shamolin as the President and CEO of MTS. Mr. Shamolin, who has served as the head of MTS Russia, replaces Mr. Leonid Melamed, who will be assuming the duties of President and CEO at Sistema, the largest private sector consumer services company in Russia and the CIS and the majority shareholder of MTS.

Under Mr. Melamed’s two years of leadership, MTS has grown from a regional operator into a globally recognized leader and innovator. MTS has grown its subscriber base by 24 million and increased its footprint through acquisitions in Russia and Armenia. Mr. Melamed supervised the launch and roll-out of the MTS brand to each of the Company’s markets of operation, an effort that ultimately led to the distinction of having MTS be the first Russian company named as a BrandZTM Top 100 Most Powerful Brands. Simultaneously, as a sign of commitment to total shareholder return, Mr. Melamed presided over the substantial increase in the Company’s dividend payment from \\$1.03 per ADR in 2005 to a recommended payout of \\$3.12 in 2008.

Mr. Shamolin joined MTS in 2005 as Vice President, Sales and Customer Service. Later he assumed leadership of MTS Russia following the Company’s 2006 reorganization. In this capacity, Mr. Shamolin managed the largest MTS business unit, one which contributes roughly 75% of value to MTS. During his tenure, revenues grew 67% and operating efficiency improved considerably as Mr. Shamolin presided over sustained growth in voice usage, adoption of value-added services, both of which led to an over 50% rise in average revenue per user (ARPU).

Vitaliy Savelyev, Chairman of the Board of Directors of MTS, commented: “One cannot argue with Leonid’s record of success in his stewardship of MTS, as his influence is evident everywhere within the organization. We are grateful for his role in shaping the business that we have, yet we have full confidence in Mikhail’s ability to carry forward Leonid’s legacy of growth and development at MTS. His long tenure with the Company is clear testimony to his capabilities, while his own track record of extracting growth and creating shareholder value as the head of its largest business unit is irrefutable. On behalf of the Board of Directors, we are eager to begin working more closely with Mikhail.”

Mr. Shamolin commented: “The Board of Directors has afforded me an extraordinary opportunity, and I am grateful for the chance to lead the largest mobile operator in the region and represent MTS before our employees, customers and shareholders. Having been involved in the growth and development of MTS for many years, I am confident that MTS is on the right path towards building upon its leadership position and remaining the communications brand of choice in our region.”