MOSCOW, Russia, November 1 /PRNewswire-FirstCall/ -- Mobile TeleSystems
OJSC ("MTS" - NYSE: MBT), the largest mobile phone operator in Russia and the
CIS, announces that it has acquired the remaining 49% stake in Barash
Communications Technologies, Inc. (BCTI), a U.S. company that is the leading
mobile phone operator in the Republic of Turkmenistan.
    In line with its strategy of consolidating the Company's ownership in its
subsidiaries, MTS acquired the additional 49% stake in BCTI, incorporated in
the United States, from the founders of the company for $18.52 million. MTS
purchased the initial 51% controlling stake of BCTI in June 2005 for $28.05
million.
    BCTI's branch in Turkmenistan holds GSM-900/1800 and AMPS licenses for
the entire territory of the country (population: 6.6 million[1]). Mobile
penetration in Turkmenistan is less than 1% and fixed line penetration is
estimated at around 6%[2]. The company provides services to approximately 60
thousand subscribers and is the leader of the two GSM providers operating in
the country.
    "We are pleased to consolidate BCTI at an attractive valuation and we are
looking forward to developing a successful mobile business in Turkmenistan.
We believe that the Turkmen mobile market offers great potential and that MTS
possesses the necessary expertise to unlock it," said Vassily Sidorov, MTS'
President and CEO, adding: "The consolidation of our ownership in BCTI
provides for the company's complete integration into MTS' unified corporate
standards, ensuring that customers in Turkmenistan receive our full range of
first rate services."
    Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in
Russia and the CIS. Together with its subsidiaries, the Company services over
50.36 million subscribers. The regions of Russia, as well as Belarus,
Ukraine, Uzbekistan, and Turkmenistan, in which MTS and its subsidiaries are
licensed to provide GSM services, have a total population of approximately
233.1 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New
York Stock Exchange with the ticker symbol MBT. Additional information about
MTS can be found on MTS' website at http://www.mtsgsm.com.
    Some of the information in this press release may contain projections or
other forward-looking statements regarding future events or the future
financial performance of MTS, as defined in the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995. You can identify
forward looking statements by terms such as "expect," "believe,"
"anticipate," "estimate," "intend," "will," "could," "may" or "might" the
negative of such terms or other similar expressions. We wish to caution you
that these statements are only predictions and that actual events or results
may differ materially. We do not intend to update these statements to reflect
events and circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events. We refer you to the documents MTS files
from time to time with the U.S. Securities and Exchange Commission,
specifically, the Company's most recent Form 20-F. These documents contain
and identify important factors, including those contained in the section
captioned "Risk Factors," that could cause the actual results to differ
materially from those contained in our projections or forward-looking
statements, including, among others, potential fluctuations in quarterly
results, our competitive environment, dependence on new service development
and tariff structures; rapid technological and market change, acquisition
strategy, risks associated with telecommunications infrastructure, risks
associated with operating in Russia, volatility of stock price, financial
risk management, and future growth subject to risks.
    [1] According to the National Institute of Government Statistics of
Turkmenistan.
    [2] According to the World Fact Book of the Central Intelligence Agency.

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