BARCELONA, Spain and MOSCOW, February 11 /PRNewswire/ --

- Companies to develop mobile services strategy to address needs of subscribers across the region.

Mobile TeleSystems OJSC (MTS), the largest mobile phone operator in Russia and the Commonwealth of Independent States (CIS), and Microsoft Corp today announced their cooperation to deliver new mobile communications services for MTS customers. The collaboration is aimed at extending the range of products in MTS' market-leading portfolio of value-added services.

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Through this agreement, MTS and Microsoft will develop a road map for delivering innovative services to satisfy rising demand for data products and services throughout MTS' markets. Initially, through MTS Connect, the company's tariff class dedicated to data transfer and mobile internet access, MTS and Microsoft plan to introduce Windows Vista-based notebook PCs, which offer built-in mobile broadband access, and make them available to customers through a subscription payment model. At prices substantially less than current laptops with embedded 3G technologies, MTS will bring to market a best-in-class proposition featuring an innovative laptop design, a variety of tariff plans to address the needs of a wide array of users, customer service and support, and equipment fully tested and certified to meet MTS customers' high expectations. The subscription PC programme is expected to be available to MTS consumers in June 2008.

"Our engagement with Microsoft allows us to fulfil our brand promise of delivering more for our customers," said Cynthia Gordon, vice president and chief marketing officer for MTS. "Customers of all types will be able to choose a bundled mobile broadband service at a price that fits their budget. The introduction of Microsoft's innovative products will enable our customers to further create for themselves a unique customer experience."

"Our cooperation with MTS represents a mutual desire to deliver the best in mobile services, whether that's business users demanding mobile data services or consumers looking for the latest in connected communications and entertainment," said Martha Bejar, corporate vice president for the Communications Sector at Microsoft. "The breadth of operator-enabled services that Microsoft has available today opens up a huge opportunity for MTS to deliver exciting experiences to their subscribers. And for Microsoft, MTS represents a significant channel to market for our software and services to give more people access to better mobile technology."

MTS and Microsoft are focused on making mobile broadband PCs relevant, affordable and accessible to all MTS subscribers with the offering first planned for rollout in metropolitan areas in Russia before extending to other countries across the region. This service offering follows Microsoft's and MTS' support of the GSMA mobile broadband computing initiative to drive adoption of mobile broadband services by mass-market PC buyers. It ensures subscribers can choose the right PC form factor, price, bundled services, and out-of-the-box experience that is best suited for their requirements, while facilitating truly ubiquitous PC connectivity.

Microsoft at Mobile World Congress

More information on Microsoft's solutions and services for mobile operators can be found by visiting Microsoft's booth in Hall 1, D19 at Mobile World Congress 2008 in Barcelona.

About Mobile TeleSystems (MTS)

Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 81.97 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS can be found on MTS' website at http://www1.mtsgsm.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realise their full potential.

About Microsoft EMEA (Europe, Middle East and Africa)

Microsoft has operated in EMEA since 1982. In the region Microsoft employs more than 16,000 people in over 64 subsidiaries, delivering products and services in more than 139 countries and territories.

Web site: http://www.microsoft.com

Moscow, Investor Relations of Mobile TeleSystems, +7-495-223-2025, ir@mts.ru; or US, Rose Tucker, +1-425-452-5463, rtucker@webershandwick.com, or Europe, the Middle East and Africa, Robin Clark, +44-20-7067-0522, rclark@webershandwick.com, or Asia Pacific, Marie Loh, +65-6825-8026, mloh@webershandwick.com, all of Weber Shandwick for Microsoft Corp /NOTE TO EDITORS: If you are interested in viewing additional information on Microsoft in EMEA, please visit http://www.microsoft.com/emea or the EMEA Press Centre at http://www.microsoft.com/emea/presscentre. Web links, telephone numbers and titles were correct at the time of publication, but may since have changed. For additional assistance, journalists and analysts may contact the appropriate contacts listed at http://www.microsoft.com/emea/presscentre/contactus.mspx. If you are interested in viewing additional information on Microsoft Corp, please visit the Microsoft web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages./ Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO , AP Archive: http://photoarchive.ap.org , PRN Photo Desk, photodesk@prnewswire.com