MOSCOW, August 11 /PRNewswire-FirstCall/ -- Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), today announces its consolidated US GAAP financial results for the three months ended June 30, 2009. Key Financial Highlights of Q2 2009 - Consolidated revenues up 11.8% q-o-q to $2,022.4 million driven by additional subscribers, rising voice and data consumption, seasonal usage factors and currency appreciation - Consolidated OIBDA[1] up 14.7% q-o-q to $953.8 million with 47.2% OIBDA margin driven by revenue growth, currency improvements and optimized period spending - Consolidated net income of $563.0 million due to revenue growth and non-cash FOREX gain through US GAAP translation of US dollar-denominated debt Key Corporate and Industry Highlights - Launch of 3G in Armenia and limited launch in Moscow - Signing of a partnership agreement with Nokia - Securing of three loans for the total amount of EUR 413 million for network development - Approval of recommended dividend payment for FY 2008 of RUB 39.40 billion ($1.16 billion) or RUB 20.15 per ordinary share ($2.96 per ADR) that comes to 60% of US GAAP net income - Appointment of Mr. Ron Sommer as the Chairman and Mr. Alexey Buyanov as the Deputy Chairman of the MTS Board of Directors - Placement of new syndicated loan facility to restructure $630 million loan due in Q2 2009 - Placement of two ruble-denominated bonds worth RUB 15 billion each in May and July 2009 - The Boards of Directors of MTS and Sistema approve the acquisition of Sistema's 50.91% stake in Comstar-UTS for $1.272 billion[2], of $5.98 per GDR, by a subsidiary of MTS Additional Developments - MTS continues to see sustained macroeconomic volatility in its markets of operations that may impact the financial and operational performance throughout the Group. Commentary Mr. Mikhail Shamolin, President and CEO of MTS, commented: "The Company demonstrated sound results during the quarter on the back of seasonal and organic growth. Despite continuing macroeconomic volatility in Russia and the CIS, strong subscriber additions, a seasonal increase in usage and on-going cost saving initiatives facilitated quarter-on-quarter revenue growth and higher operating margins. As our markets are changing, we are adapting our strategic priorities to meet new challenges and seize opportunities by developing our monobrand retail channel and entering the broadband market to deliver wider Internet access, integrated communications services and innovative solutions to our customers." For further operational information and full consolidated unaudited financial statements, please visit http://www.mtsgsm.com/news/reports/ Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 95.03 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://www.mtsgsm.com/. Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company's most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks. [1] See Attachment A for definitions and reconciliation of OIBDA and OIBDA margin to their most directly comparable US GAAP financial measures. [2] In order to mitigate the risk of adverse exchange rate movements in-between announcement and closing, 50% of the consideration will be paid at a fixed exchange rate of 31.9349 RUB per USD and the remaining consideration will be paid based on the official exchange rate of the Central Bank of Russia on or around the date of completion. For further information, please contact: Mobile TeleSystems, Moscow Investor Relations Tel: +7-495-223-2025 E-mail: DATASOURCE: Mobile TeleSystems (MTS) CONTACT: For further information, please contact: Mobile TeleSystems, Moscow, Investor Relations, Tel: +7-495-223-2025, E-mail:

Copyright