MTS will redeem all of its outstanding US$300 million one-year unsecured Rule 144A/Regulation S Floating Rate Notes. The notes will be redeemed on May 5, 2004, at 100% of their principal amount, plus accrued interest thereon to the redemption date. The principal amount and interest of all notes to be redeemed shall become due and payable on the redemption date. Interest upon the principal amount of the notes shall cease to be payable from and after the redemption date.

Payment of the redemption price of the notes will be made upon presentation and surrender of such notes at the following payment agents:

The Trustee:
JPMorgan Chase Bank
4 New York Plaza
15th Floor
New York, New York 10004
Facsimile: +1 212 623 6216/5
With a copy to facsimile: +44 1202 34 7438 The Luxembourg Paying Agent:
J. P. Morgan Bank Luxembourg S. A.
5 Rue Plaetis
L-2338 Luxembourg
Facsimile: +352 4626 85380

The notes were issued on August 5, 2003, in the international debt capital markets. The notes were issued through MTS’ 100% beneficially owned subsidiary, Mobile TeleSystems Finance S. A., a company organized under the laws of Luxembourg, and are guaranteed by MTS. JPMorgan Chase Bank, a New York banking corporation, is trustee for the issue. The notes mature on August 5, 2004, and have a quarterly coupon payable at 3-month Libor plus 4%. The notes were issued at 99% of their nominal principal amount and carry a call option in 6 and 9 months. The notes were offered and sold to non-U.S. persons outside the United States in offshore transactions in compliance with Regulation S of the U. S. Securities Act and in the United States to “qualified institutional buyers” in compliance with Rule 144A of the U. S. Securities Act. The notes are listed on the Luxembourg Stock Exchange.

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