OREANDA-NEWS. June 05, 2008. Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announced the appointment of Mr. Mikhail Shamolin as President and Chief Executive Officer (CEO) of Mobile TeleSystems OJSC (MTS), reported the press-centre of MTS.

MTS' Board of Directors (BoD) in accordance with the Company's Charter appointed Mr. Mikhail Shamolin as the President and CEO of MTS. Mr. Shamolin, who has served as the head of MTS Russia, replaces Mr. Leonid Melamed, who will be assuming the duties of President and CEO at Sistema, the largest private sector consumer services company in Russia and the CIS and the majority shareholder of MTS.

Under Mr. Melamed's two years of leadership, MTS has grown from a regional operator into a globally recognized leader and innovator. MTS has grown its subscriber base by 24 million and increased its footprint through acquisitions in Russia and Armenia. Mr. Melamed supervised the launch and roll-out of the MTS brand to each of the Company's markets of operation, an effort that ultimately led to the distinction of having MTS be the first Russian company named as a BrandZTM Top 100 Most Powerful Brands. Simultaneously, as a sign of commitment to total shareholder return, Mr. Melamed presided over the substantial increase in the Company's dividend payment from \\$1.03 per ADR in 2005 to a recommended payout of \\$3.12 in 2008.

Mr. Shamolin joined MTS in 2005 as Vice President, Sales and Customer Service. Later he assumed leadership of MTS Russia following the Company's 2006 reorganization. In this capacity, Mr. Shamolin managed the largest MTS business unit, one which contributes roughly 75% of value to MTS. During his tenure, revenues grew 67% and operating efficiency improved considerably as Mr. Shamolin presided over sustained growth in voice usage, adoption of value-added services, both of which led to an over 50% rise in average revenue per user (ARPU).

Vitaliy Savelyev, Chairman of the Board of Directors of MTS, commented: "One cannot argue with Leonid's record of success in his stewardship of MTS, as his influence is evident everywhere within the organization. We are grateful for his role in shaping the business that we have, yet we have full confidence in Mikhail's ability to carry forward Leonid's legacy of growth and development at MTS. His long tenure with the Company is clear testimony to his capabilities, while his own track record of extracting growth and creating shareholder value as the head of its largest business unit is irrefutable. On behalf of the Board of Directors, we are eager to begin working more closely with Mikhail."

Mr. Shamolin commented: "The Board of Directors has afforded me an extraordinary opportunity, and I am grateful for the chance to lead the largest mobile operator in the region and represent MTS before our employees, customers and shareholders. Having been involved in the growth and development of MTS for many years, I am confident that MTS is on the right path towards building upon its leadership position and remaining the communications brand of choice in our region."
 
Biography
Mr. Mikhail Shamolin joined MTS in July 2005 as Vice-President, responsible for sales and customer service. He was appointed Vice-President, Director of Business-unit "MTS Russia" in August 2006.

Prior to joining MTS, Mr. Shamolin worked at McKinsey & Co. from 1998 to 2004. From 2004 to 2005 he worked at Interpipe Corp. (Ukraine) as Managing Director of the Ferroalloys Division.

Mikhail Shamolin was born in 1970. In 1993 he graduated Russian Academy of Government Service under the President of the Russian Federation. From 1996 to 1997 he studied at Wharton Business School, where he completed finance and management coursework for top-managers.