MOSCOW, RUSSIAN FEDERATION — MAY 23, 2006 — MOBILE TELESYSTEMS OJSC («MTS» — NYSE: MBT), THE LARGEST MOBILE PHONE OPERATOR IN RUSSIA AND THE CIS, ANNOUNCES THE RECOMMENDED AMOUNT OF DIVIDENDS.
The MTS Board of Directors (BoD) meeting held on May 18, 2006, recommended the annual general meeting of shareholders (AGM) approve annual dividends of RUR 7.6 per ordinary MTS share (approximately $1.4 per ADR1) for the 2005 fiscal year, amounting to a total of RUR 15.15 billion ($561.98 million2). If the dividends are approved, MTS, in accordance with Russian tax legislation, will withhold a tax of 9% to 15% on the dividend amount when payable, depending on the recipient? s legal status and jurisdiction.
As announced earlier, the record date for the Company&’s share- and ADR-holders entitled to participate in the AGM and to receive dividends was set for May 6, 2006. The AGM will be held on June 23, 2006.
1 According to the Russian Central Bank exchange rate of 26.9569 RUR/$ as of May 18, 2006.
2 The amount is 50% of net income under US GAAP.
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