MTS Announces Recommended Amount of Dividends for FY 2007

On May 19, 2008, MTS' Board of Directors (BoD) recommended the annual general meeting of shareholders (AGM) approve annual dividends of RUR 14.84 per ordinary MTS share (approximately $3.12 per ADR(1)) for the 2007 fiscal year, amounting to a total of RUR 29.58 billion ($1,242.9 million) or 60% of US GAAP net income. 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 May 8, 2008. The AGM will be held on June 27, 2008.

The Company's dividend policy adopted in 2007 targets a return of a minimum of 50% of annual US GAAP net income to its shareholders through dividend payments. The amount could vary depending on a number of factors, including the outlook for earnings growth, capital expenditure requirements, cash flow from operations, potential acquisition opportunities as well as the Company's debt position.

The Chairman of MTS' BoD, Vitaliy Savelyev, commented: "The dividend amount is a clear sign of MTS' commitment to enhancing shareholder value. The rewards enjoyed by our shareholders have historically grown inline with the scale and profitability of our business. We endeavor to continue rewarding our shareholders by continuing to employ a sound financial policy and running profitable and efficient operations."

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 ofRussia, as well asArmenia, Belarus,Turkmenistan,Ukraine, andUzbekistan, 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://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," 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 inRussia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.

(1) According to the Russian Central Bank exchange rate of 23.7939 RUR/$ as of May 5, 2008.

    For further information, please contact:

    Mobile TeleSystems, Moscow Investor Relations
    Tel: +7-495-223-2025
    E-mail: ir@mts.ru

SOURCE Mobile TeleSystems OJSC

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