Mobile TeleSystems, the largest cellular operator in Russia and the CIS, announces the completion of forming macroregion \"Southwest\" as parts of its management system improvement program.

With the introduction of Southwest macroregion, MTS finishes the program of its management system improvement. Within the framework of this program three levels of management have been created: corporate center, macroregion, and region. The corporate center sets the general company strategy, uniform standards, rules and procedures of management and develops the company\'s uniform policy for the major development areas. Macroregions provide the management of the regional business-units operations. Day-to-day management of the company\'s activities in a specific region is delegated to the regions.

There are currently ten MTS macroregions, each of them uniting several subjects of the Russian Federation (regions).

The Southwest macroregion includes Belgorod, Bryansk, Voronezh, Kursk, Lipetsk and Orel regions. MTS\'s total subscriber base in the macroregion exceeds 2.8 million people (as of March 31, 2006).

Leonid Denisov was put in charge of the position of the Southwest macroregion Director. The macroregion\'s headquarters are located in Orel.

Commenting on the creation of a new macroregion, MTS Acting President Leonid Melamed pointed out: \"We highly value the success achieved by our team in Chernozem (Black Earth) region. MTS is the local leader with over one-third of the macroregion\'s cellular market and displays a strong financial performance. The macroregion is managed by a strong leader who worked hard to put in place a new management system in the macroregion.

\"MTS\'s objectives in the Southwest are to secure the recent positive dynamics, to generate stable and loyal subscriber base. This is what the strategy of achieving the leadership in both macroregion in general and in its separate key markets will be based on,\" - emphasized Mr. Denisov, the Director of Southwest macroregion.