Motorola and MTS Sign Contract to Improve Quality, Capacity and Performance of MTS Network in Moscow Macro Region

MOSCOW, Russia - November 23, 2006 - Mobile Telesystems (MTS; NYSE: MBT), the largest mobile operator in Russia and CIS, has awarded an equipment upgrade and services contract to Motorola, Inc. (NYSE:MOT) to improve the quality, capacity and performance of its Moscow macro region network, MTS’ largest geographic region.

This contract will allow MTS to further improve its voice and data quality, and help to reduce operating and capital expenses by introducing new features, improving network usage capacity and optimizing network architecture and topology.

The project includes base station upgrades in the Moscow macro region and the deployment of EDGE[1] on all segments of the macro region’s network[2], which will allow MTS to double the number of potential data service subscribers and increase the speed of data transfer.

Voice and data quality on the MTS network is expected to be improved by optimizing performance, capacity, and deploying new hardware and software functionality, such as AMR voice codec which is designed to improve voice quality while using the same amount of network resources. Comprehensive network optimization, performed using Motorola’s Intelligent Design and Growth Planning service, will allow MTS to deliver increased quality of service and soon offer its subscribers new services and applications while expanding the coverage of its existing services.

This project is expected to help MTS significantly reduce operating and capital expenses which will help to drive shareholder value.

“World-leading telecoms companies use advanced high-tech solutions to increase their competitive abilities. MTS’ strategy puts a special emphasis on equipment upgrades which are viewed as a long term investment into the company’s successful future,” says Sergey Aslanyan, CTO and CIO, MTS Group.

“Combined with our innovative hardware and software products, Motorola’s network optimization solution will give MTS the deeper insight into its network service and help deliver top-level performance,” comments Jose Figueroa, corporate vice president and general manager, Motorola Networks & Enterprise EMEA. “This contract reflects the incredible growth of the mobile market in Russia and demonstrates that MTS and the region as a whole is at the cutting edge of mobile infrastructure investment.”

About MTS
Mobile TeleSystems (“MTS”) is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 68.53 million subscribers. The 87 regions of Russia, as well as such countries as Belarus, Ukraine, Uzbekistan and Turkmenistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of over 230 million. Since June 2000, MTS’ Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT).
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,” 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. 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. Such factors may include, 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 in Russia, volatility of stock price, and financial risk management.

About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering “must have” products, “must do” experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com

MOTOROLA and the stylised M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2006. All rights reserved.
[1] EDGE (Enhanced Data Rates For GSM Evolution) is an evolution of GPRS technology offering higher bandwidth and throughput, up to 384 Kbps. EDGE–based services are similar to those enabled by GPRS. EDGE does not require any extra settings and is selected automatically by a supporting mobile phone when available.
[2] Currently EDGE services are available to users in Moscow, Samara, Oryol, Lipetsk, Voronezh, Kursk, Belgorod, and Bryansk regions.

Contact Information

Gemma Priscott

Motorola Networks & Enterprise EMEA

Motorola, Inc.

Contact via E-mail