OREANDA-NEWS. On March 11, 2009 Mobile TeleSystems OJSC (“MTS” - NYSE: MBT), announced its consolidated US GAAP financial results for the three months (unaudited) and full year ended December 31, 2008, reported the press-centre of MTS.

Key Financial Highlights of FY 2008
Consolidated revenues up 24.2% y-o-y to US10,245 million due to subscriber growth and increasing contribution from voice and data usage

Consolidated OIBDA1 up 21.7% to US 5,140 million y-o-y with 50.2% OIBDA margin due to continued revenue growth and cost control

Consolidated net income down 6.8% y-o-y to US 1,930 million due to non-cash FOREX loss through US GAAP translation of US dollar-denominated debt

Free cash-flow2 positive with US 2,148 million for the full year 2008 due to the overall revenue growth of the Group
 
Key Corporate and Industry Highlights
Redemption of the US 400 million Eurobond issued in 2003 in January 2008

Mr. Mikhail Shamolin named as the new President and CEO of MTS in May 2008

Launch of 3G networks in Russia in May 2008

Placement of three bonds worth RUB 30 billion in 2008

Launch of iPhone 3G™ sales in October 2008

Expansion of Board from seven to nine members with three independent in October 2008

Signing of a non-equity strategic partnership agreement with Vodafone in October 2008

Launch of 3G network in Uzbekistan in December 2008

Completion of dividend payment for the FY 2007 in December 2008

Agreement signed to bring MTS brand to India through Sistema Shyam TeleServices in December 2008

MTS first Russian company named as BRANDZ™ Top 100 Most Powerful Brands by Millwood Brown and Financial Times

Mr. Mikhail Shamolin, President and Chief Executive Officer, commented, “Our strong performance for the year is testimony to both the sustained growth drivers in our markets and our ability to profitably develop our business. The current economic weakness and currency volatility, as evident by decreased corporate spending and overall business activity in our markets, may negatively impact our short-term financial and operational performance. However, our pro-active marketing initiatives will strengthen customer loyalty, and sustained investments in distribution and 3G, facilitated by our relatively strong financial position, will ensure that we continue to provide the best customer experience and enhance overall customer lifetime value in the medium- and long-term."