February 17, 2010 — Alcatel-Lucent today announced that MTS-Ukraine, one of the leading mobile operators in Ukraine and a wholly-owned subsidiary of Mobile TeleSystems OJSC (NYSE: MBT), has selected Alcatel-Lucent to conduct a Long Term Evolution (LTE) trial, which will begin in the second half of 2010.

“We embrace innovation that to us is a recipe for success,” said Andrei Dubovskov, Head of MTS-Ukraine. “LTE is a logical next step in the development of high-speed data transmission services. The launch of the trial LTE solution will enable us to assess the benefits of 4G technology not just in theory but through real practical experience.”

Alcatel-Lucent will be leveraging its industry-leading LTE expertise to provide an end-to-end solution including LTE base stations (eNodeBs), the Evolved Packet Core (EPC), IP service routing network elements as well as operation, administration and maintenance (OAM) systems. Alcatel-Lucent will provide a range of professional services including project management, planning, installation, integration and commissioning, and testing.

“This agreement allows us to extend our long-standing partnership with MTS, enabling Alcatel-Lucent to play a prominent role in the company’s network transformation and LTE projects. We consider this agreement to be a strong endorsement of Alcatel-Lucent’s innovation and forward-looking strategy in the area of mobile broadband solutions and efficient high-performance IP-based networks,” commented Alexander Tikhonov, Alcatel-Lucent’s vice president for the CIS.

Alcatel-Lucent’s LTE solution is leveraged in the majority of LTE projects being pursued by tier 1 operators around the globe, including in North America, Europe, the Middle East and Asia.