Eastern European Markets
April 29, 2005

Siemens to expand mobile networks for MTS in Russia, Belarus and the Ukraine – US dollars 265 million framework contract signed

(Munich, Apr 29, 2005) The largest mobile provider in Russia and the CIS, Mobile TeleSystems (MTS), has signed a framework contract with Siemens to supply a total of 265 million US dollars worth of network technology. Under the terms of the contract, Siemens Communications will expand the capacities of the MTS GSM/GPRS mobile networks in Russia, Belarus and the Ukraine in the course of the year.

The strong increase in demand that MTS has been enjoying in Russia and the countries of the CIS is necessitating further expansion of its networks. The framework contract with Siemens provides for increasing the capacity of the provider’s radio and switch networks and integrating a platform for Intelligent Network services. To do that,

Siemens Communications will be installing additional transmission and receiving systems (base stations) and upgrading the switches with new hardware and software.

“This new contract will enable us to further consolidate our leading position as a supplier of mobile communication infrastructure in this strategic market for us,” stated Christoph Caselitz, President of Mobile Networks at Siemens Communications. Russia and the CIS are considered to be one of the largest growth markets in mobile communication; the mobile subscriber base in Russia, for example, grew by more than 100 per cent in 2004.

MTS is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, MTS services about 39 million subscribers. The regions of Russia, as well as Belarus, Ukraine and Uzbekistan, in which MTS and its subsidiaries are licensed to provide GSM services, have a total population of approximately 226 million. Since June 2000, MTS’ Level 3 ADRs have been listed on the New York Stock Exchange with the ticker symbol MBT.

Siemens Communications
Siemens Communications is one of the largest players in the global telecommunications industry. Siemens is the only provider in the market that offers its customers a full-range portfolio, from devices for end users to complex network infrastructures for enterprises and carriers as well as related services. Siemens Communications is the world’s innovation leader in convergent technologies, products and services for wireless, fixed and enterprise networks. It is the largest Group within Siemens and operates in more than 160 countries around the world. In fiscal 2004 (year-end September 30), its 60,000-strong workforce posted sales of approximately 18 billion euros.

Further information:
Christian Hoenicke
D-81359 Munich
Tel:+49 (0) 89 722 37327
Fax:+49 (0) 89 722 23855

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