Mr. Dubovskov, who is currently first deputy Director General of Business unit “MTS Ukraine,” will replace Mr. Pavlovsky and assume duties as the new head of MTS Ukraine. Mr. Pavlovsky accepted an offer to return to Moscow and become a senior manager of one of the Sistema companies.

President and CEO of MTS, Mr. Melamed commented: “Considerable work has been completed in Ukraine over the past year with the Company’s brand shining brighter and becoming more attractive for the subscribers with a number of package deals developed for our corporate clients. The achieved results of the past year exceeded both our and market’s expectations. Thanks to our efforts, the attitude towards the Ukrainian market has changed, and we are grateful to Pavel for his first-rate work. Andrei Dubovskov previously headed our operations in the Urals region, where the Company achieved dynamic growth despite heated competition. I am confident that Andrei is capable to not only maintain the high standards of excellence at MTS Ukraine but to also provide a new impulse for further growth.”

Commenting on his appointment, Mr. Dubovskov highlighted: “I am charged with reinforcing our position in the market by introducing attractive products and services. Quality of service remains a key factor in our work in 2008. The level of investments in network development and customer service will slightly exceed the levels of the past year. A strong team of professionals has been formed and together we will reach set targets and meet the expectations of our subscribers and shareholders.”

Mr. Pavlovsky stated: “Ukraine is one of most interesting and dynamic markets with great prospects for growth. Last year, utilizing the market’s potential and implementing the Company’s new development strategy, a number of successful projects were completed: rebranding, launch of BlackBerry services  and MTS Connect, as well as the launch of a CDMA network providing users with the ability to enjoy high speed data services. I feel these projects will serve as solid foundation to help ensure the Company’s continued success in the future.”
 

Biographies

Mr. Andrei Dubovskov joined Business unit “MTS Ukraine” in December 2007 as first deputy Director General.

Mr. Dubovskov graduated in 1993 from the State Institute of Cinematography named after S.A. Gerasimov. From 2006-2007, he was the head of macro-region MTS Ural. From 2004 to 2006, he was head of the MTS branch in Nizhny Novgorod. From 2002 to 2004, he headed Tele2 operations in Nizhny Novgorod.

Mr. Dubovskov has a wealth of experience in working for Russian and foreign telecommunications companies. From 1993 onwards, he occupied a number of management positions in such companies as Millicom International Cellular S.A., Millicom International Cellular B.V., Regionalnaya Sotovaya Svyaz LLC and CJSC 800 as well as other companies in Moscow, Alma-Ata, Nizhny Novgorod and Perm.

Mr. Pavel Pavlovsky joined MTS Ukraine in April 2007 as Director General. Previously, he was Vice President of MTS in charge of Business unit “MTS Foreign Subsidiaries.”

Mr. Pavlovsky graduated with honors from the Leningrad State University and received an MBA degree in 1999 from the INSEAD Business School. Prior to joining MTS in 2003, he worked for more than six years in consulting, specifically at A.T. Kearney in Moscow, as well as at Mercer Management Consulting in London. After joining MTS’ corporate development department in 2003, he participated in the implementation of the Company’s new organizational structure in Russia, including the development of its macro-regional structure. He participated in the rebranding of MTS subsidiaries in Russia and abroad. From 2005, Mr. Pavlovsky worked as director of the department in charge of MTS’ foreign subsidiaries and member of UMC’s Supervisory Board. In the summer of 2006, he was appointed acting Vice President in charge of MTS’ foreign subsidiaries, from January 2007 Vice President, Head of Business unit “Foreign Subsidiaries.”

¹ First in the CIS.