MTS offers ISD calls to Russia at just Rs.4.99 per minute

Company Brief

Gurgaon, August 10, 2009

Indian operator Sistema Shyam TeleServices and Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the largest mobile operator in Russia and CIS countries, have announced a partnership to offer a unique customer proposition which allows subscribers to save considerably on the calls between the operators' networks in India and Russia.

MTS-India has introduced for its customers an opportunity to get upto 50% lesser call charges as compared to some of the other operators, for calls being made from their network in India to mobile phones of "MTS Russia", when subscribing to the special service. At the same time, MTS Russia subscribers can now make calls to India with up to 85% discount from the regular price.

"India and Russia have agreed to increase their bilateral trade to $10bn by 2010 from this year's expected level of $7bn. In order to increase mutual interest between Indian and Russian corporate giants, Indian business leaders should frequently reach out directly to the 89 Russian regions while Russian joint ventures must directly deal with Indian states. Mobile communications is an essential element of this process of integration and business efficiency between India and Russia. We hope that cooperation between MTS and Sistema Shyam TeleServices Ltd will help strengthen this partnership. As a result of this partnership, the cost of making calls to "MTS Russia" network for ‘MTS India" subscribers is reduced to just Rs.4.99 per minute, which is the best price till date in India for making calls to Russia", noted Leonid Musatov, Chief Marketing Officer, Sistema Shyam TeleServices, India.

"The partnership between MTS and Sistema Shyam TeleServices opens new opportunities for Indo-Russian business relations, which is especially important as the year 2009 was declared as the ‘Year of India' by the government of Russia. In particular, Russian businessmen are getting a great opportunity for affordable communication with their business partners in major Indian administrative and business centers for a great price – at a cost equivalent of making long distance calls within Russia", said Mikhail Gerchuk, Vice- President for Commercial Affairs of Russia-based MTS.

With inclusion of Sistema Shyam TeleServices in the list of operators who get special discounted call on their networks when subscribing to MTS service, MTS Russia has added India among its "Native Countries". This partnership will allow the "MTS Russia" subscribers to not only make call to CIS countries, where MTS subsidiaries operate, but also to India, for the price of inter-call for Russia<1>.

It will be highly beneficial for inbound and outbound travelers as well as families with relatives and friends in any of these countries. Statistics show more than 50 thousand Indian citizens have visited Russia last year and for 90% of these trips the purpose was study or business. At the same time more than 75 thousand Russians came to India in 2007. Just for one year the number of such visitors grew by 21.4%. And 41.3% of them called as purpose of their visit development of business relations with Indian companies.

For further information, please contact:

Sistema Shyam TeleServices Ltd

Shalini Vig Wadhwa

Mobile: +91 9711209768

Email: pr@mtsindia.in