MOSCOW, May 29 /PRNewswire-FirstCall/ -- Mobile TeleSystems OJSC ("MTS"
- NYSE: MBT), the largest mobile phone operator in Russia and the CIS,
today 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 Charter (1) 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."
Biography
Mr. Mikhail Shamolin joined MTS in July 2005 as Vice-President,
responding for sales and customer service. He was appointed Vice-President,
Director of Business-unit "MTS Russia" in August 2006.
Prior to joining MTS, Mr. Shamolin worked at McKinsey & Co. from 1998
to 2004. From 2004 to 2005 he worked at Interpipe Corp. (Ukraine) as
Managing Director of the Ferroalloys Division.
Mikhail Shamolin was born in 1970. In 1993 he graduated Russian Academy
of Government Service under the President of the Russian Federation. From
1996 to 1997 he studied at Wharton Business School, where he completed
finance and management coursework for top-managers.
Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in
Russia and the CIS. Together with its subsidiaries, the Company services
over 85.68 million subscribers. The regions of Russia, as well as Armenia,
Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its
associates and subsidiaries are licensed to provide GSM services, have a
total population of more than 230 million. Since June 2000, MTS' Level 3
ADRs have been listed on the New York Stock Exchange (ticker symbol MBT).
Additional information about MTS can be found on MTS' website at
http://www1.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," and
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 and the CIS,
volatility of stock price, financial risk management and future growth
subject to risks.
(1) The Company's charter is available at
http://www.mtsgsm.com/corporate_governance/charter.
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SOURCE Mobile TeleSystems OJSC
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CONTACT:
For further information, please contact:
Mobile TeleSystems, Moscow Investor Relations, Tel:
+7-495-223-2025, E-mail: ir@mts.ru
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