Sistema Shyam TeleServices Ltd, operating under the brand MTS, entered into a contract with ZTE for infrastructure and network equipments

13th May 2009, Gurgaon India :- Sistema Shyam TeleServices Ltd. [SSTL] has recently entered into a contract with ZTE Corporation (“ZTE”), a leading global provider of telecommunications equipment and network solutions. SSTL intends to create a superior network with increased efficiency and extended reach. Globally the company is bullish on its pan-India network expansion plan and envisages completing rollout by the third quarter of 2010. Currently, SSTL is operating in the Rajasthan, Tamil Nadu as well as the Kerala circle.

Vsevolod Rozanov, President and CEO, Sistema Shyam TeleServices Ltd commented, “This strategic foray with ZTE in the network equipments and infrastructure building sphere will enable us to offer high quality mobile telephony experience to the end consumer. There was immense level of strategic insight involved in the process of selection and some decisive parameters were the specific advantages of equipment, technological expertise and the capability to perform complex national-scale projects that we believe ZTE possess”.

Under the contract with Sistema Shyam TeleServices Ltd, ZTE will provide Wireless and Core Network equipments. Besides the existing contract, SSTL and ZTE will also explore other collaborative possibilities going forward.

SSTL at present provides mobile telephony connections under the MTS brand name, to over 600 towns of Rajasthan, 513 towns of Tamil Nadu, and 226 towns of Kerala.

About Sistema Shyam TeleServices Limited

Sistema Shyam TeleServices (SSTL) is a joint venture company between Sistema {LSE: SSA} of Russia and Shyam Group of India. Sistema is the majority share holder in this joint venture with a 74% equity stake, along with the Shyam Group, holding a 23.5% stake and the rest 2.5% being public partake. Headquartered in Gurgaon, India, SSTL has licenses and spectrum to provide mobile telephony services in all the 22 circles across the country. In a recent development, SSTL tied up with Mobile TeleSystems OJSC of Russia to bring the globally acclaimed telecom brand – MTS – to India. MTS globally is the 8th biggest mobile telephony services operator whose annual sales are about $10 billion. Recently, MTS was named the world’s 71st most powerful brand and the top brand in Russian and Eastern Europe in the BRANDZ ranking published by the Financial Times and market research firm Millward Brown.

For further details please visit: www.mtsindia.in

About ZTE

ZTE is a leading global provider of telecommunications equipment and network solutions. It has the widest and most complete product range in the world – covering virtually every sector of the wire line, wireless, service and terminals markets. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries, helping them to achieve continued revenue growth and to shape the future of the world’s communications. ZTE commits around 10% of its annual turnover to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. ZTE leads China’s 3G industry with about 30% share of the total 3G equipment market in 2008. ZTE is China’s only listed telecoms manufacturer, with shares publicly traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ).

For more information, please visit www.zte.com

Press contacts:

Shalini Wadhwa

Corporate Communications Director

Sistema Shyam TeleServices Ltd.

Mobile: +91 9667123456

shalini.wadhwa {at} mtsindia(.)in

Esha Banerjee

Gutenberg Communications

Mobile: +91 9810623157

esha {at} gutenbergpr(.)com