Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces the commercial launch of its 3G network in Armenia.

MTS launches today the first UMTS / HSPA 3G network in Armenia in the three largest cities of the country: Yerevan, the capital of Armenia, Guymri and Vanadzor. The network will be expanded to additional cities during 2009. The next-generation network will deliver faster data download speeds through the advanced UMTS / HSPA technology, enabling such innovative services such as video calling, and increase capacity to handle usage growth.

“By introducing 3G technology in Armenia, we are keen on playing our part in developing the telecommunications infrastructure in the country and offering consumers new products and services as well as enhanced quality,” commented Mr. Oleg Raspopov, Vice President for Foreign Subsidiaries at MTS. “We view our 3G network as an ideal vehicle to meet the growing mobile broadband demand in Armenia and help stimulate further uptake in data and content services.”

Development of UMTS networks is a cornerstone of MTS’ strategy to provide mobile broadband in the CIS. As these markets demonstrate relatively low levels of fixed-line penetration and historic underinvestment in infrastructure, MTS views its networks as an ideal vehicle to meet the growing broadband Internet needs of its subscribers through attractive data products and services.

MTS already operates pan-regional 3G networks in Russia and Uzbekistan and offers high-speed data access through its proprietary CDMA-450 network in Ukraine.