Mr. Eric Franke, previously Director General of Ukrainian Mobile Communications (UMC), a 100%-owned subsidiary of MTS in Ukraine, has been appointed First Vice-President and COO of MTS. His responsibilities will include managing a number of the Company’s operating functions — Technical Strategy and Development, Information Technology (IT) and Logistics.

Mr. Eric Franke assumes his new position from October 3, 2005. Mr. Adam Wojacki, UMC’s Deputy Director General and Director of Marketing, will serve as Acting Director General of UMC.

Mr. Mikhail Shamolin has been appointed Vice-President for Sales and Customer Service. He will be in charge of managing the Sales and Customer Service division and be responsible for MTS’ Russian macro-regional business units.

The Corporate Development and Strategy functions have been integrated into one division. Ms. Tatiana Evtushenkova, previously Vice-President for Investments and Corporate Development, has been appointed Vice-President for Strategy and Corporate Development.

Mr. Dmitry Prokhorenko, previously Director of Human Resources (HR) at MTS, has been appointed Vice-President for Human Resources. Raising the status of the HR division highlights the importance placed by the Company on applying an efficient staffing policy and implementing uniform talent management standards at MTS.

These new positions have been created within the framework of the management optimization program initiated in 2003. A vital stage of this program was the implementation of a three-tiered management structure comprising of the Corporate Center, Macro-Regional and Regional business units, as well as a greater degree of centralization in such key functions as Strategy, Marketing, Sales and Customer Service, Technical, IT, and Finance and Investments. The most recent changes are aimed at bringing the Company’s management structure in line with its key business priorities.

“The changes in the management structure are due to the further implementation of the management optimization program and are aimed at further strengthening MTS’ leadership position in its markets of operation. The appointments of Eric Franke and Mikhail Shamolin bring additional talent and professional knowledge to our management team,” highlighted MTS’ President and CEO, Vassily Sidorov.

Biographies

Erik Franke

Born in 1955. Graduated from Delft University.

In 1982 Mr. Franke began work at Ericsson in The Hague, Netherlands, moving to Koning&Hartman; Company in 1984. In 1988 he was invited back to join Ericsson as Director of Mobile Communications and, in 1994, he was appointed Ericsson’s Vice-President for Russia and the CIS.

In August 1998 Mr. Franke became Director for Mobile Communications at GTS (Golden Telecom). His responsibilities included, among others, management of the Company’s activities in Ukraine.

In March 2001 Mr. Franke was appointed Director General of UMC. During his time at UMC, the number of UMC subscribers increased from 500 thousand to 10 million.

Mikhail Shamolin

Born in 1970. Graduated from the Moscow State Automobile and Road Construction Institute in 1992.

In 1993 Mr. Shamolin received a second degree from the Russian Academy of State Service of the President of Russian Federation. In 1996—97 he completed an executive program in Finance and Accounting at the University of Pennsylvania’s Wharton School of Business.

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

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