New Boss for Russian Network

Vassily Sidorov has been nominated as the new President and CEO of Mobile TeleSystems, the largest mobile phone operator in Russia. He will replace Mikhail Smirnov who leaves to head MGTS, one of Russia's largest fixed-line operators.

Vassily Sidorov was nominated as the new President and Chief Executive Officer of MTS at a meeting of MTS' Board of directors held on August 11,2003. Mr. Sidorov's candidacy will be voted upon at an extraordinary shareholders meeting to be held on October 25, 2003. The Board also named Mr. Sidorov acting President of MTS from September 1. Mikhail Smirnov, the Company's current President, will continue in his role until that date to ensure a smooth transition.

Mr. Sidorov is currently the First Deputy General Director for Finance and Investments at Sistema-Telecom, the telecoms arm of AFK Sistema, a majority shareholder in MTS. He has been on the Board of MTS since 2002. Before joining Sistema-Telecom in 2000, Mr. Sidorov served as the Deputy General Director for Finance (CFO) of Svyazinvest, a state-controlled holding company for local fixed-line operators and Rostelecom.

Commenting on his nomination, Mr. Sidorov said: "The management change does not imply a change in the Company's strategy. Our top priorities are to strengthen our leadership in markets where we currently operate, as well as to continue expanding into new markets where we can generate value. I look forward to continuing the excellent work done by Mikhail Smirnov and the rest of the management team who have built MTS into the largest mobile phone operator in the region and one of the few Russian companies listed on the NYSE. In addition, we will continue and strengthen the company's focus on operational efficiency, customer orientation, and financial transparency."

Michael Guenther, Member of the Board of T-Mobile International and Co-Chairman of MTS' Board, said: "I am very pleased to recommend Vassily Sidorov's appointment to the shareholders. I have been working with Mr. Sidorov in his current capacity for several years and know him as one of the most talented managers in Russia. His experience, particularly in the telecom industry which he has accumulated over the past 6 years, will enable him to make a meaningful contribution to the Company."

Posted to the site on 19th August 2003