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Russian Operator Migrates From 2G To 3G

30th September 2003

Russia : Motorola's Global Telecom Solutions Sector (GTSS) announced a multi-million frame contract with Mobile TeleSystems (MTS). Motorola will supply MTS, the leading Russian operator, with GSM/GPRS radio frequency infrastructure that will enable MTS to increase its coverage area and the capacity of its network. Motorola's infrastructure now supports about half of MTS' 10 million Russian subscribers.

Motorola's flexible Horizon system will simplify the future development of the MTS network as the company looks to incorporate 2.5G General Packet Radio Service (GPRS), and subsequent 3G services. The new contract is the latest in a series of agreements between MTS and Motorola that began in 1997.

Margaret Rice-Jones, corporate vice president and general manager, Europe Middle East and Africa, Motorola GTSS, said: "We're very excited to have been awarded MTS' largest-ever frame agreement. Today's announcement is further evidence of Motorola's ability to deliver the right services to operators at the right time. We are committed to helping MTS expand and improve its network as it looks to build on its market-leading position. We look forward to assisting MTS as it migrates from GSM to GPRS and into 3G."

Yuri A. Gromakov, first vice president of Mobile TeleSystems, said: "MTS has had the pleasure of cooperating with Motorola for many years while deploying its high-quality infrastructure equipment in the Moscow Region, the Urals, Siberia and other parts of the Russian Federation. This agreement is a sign of the further development of this cooperation. We are pleased to be working with Motorola as we continually expand our network and the services we offer to our customers."

About Mobile TeleSystems

Mobile TeleSystems (MTS) is the largest mobile phone operator in Russia, Central and Eastern Europe. The Company provides services in GSM standard to over 13 million customers in Russia, Belarus and Ukraine; its license footprint covers a territory with a population of 169.2 million. MTS has listed its shares on the New York Stock Exchange (NYSE) in July 2000 under the symbol MBT

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