MTS Selected Teleste to Equip their Nationwide Digital TV Infrastructure

TURKU, FINLAND, February 3, 2012 /PRNewswire/ --

The Largest Russian Telecom Operator Enters into its Digital TV Service Delivery Deployment with Teleste

Teleste Corporation, a leading technology and engineering service provider of broadband video and service platforms, and Mobile TeleSystems OJSC ("MTS"), the leading telecommunications provider in Russia and the CIS, announced deployment of the Teleste Luminato video headend platform and Teleste Broadcast Manager service to the MTS nationwide digital TV headend network.

Fixed broadband network and digital services development is one of MTS's key interests. MTS has already implemented several projects for the construction and modernization of fixed networks in Russia and plans to convert all the networks to digital format in 2012-2013. MTS is now further strengthening its video distribution network by digitalising headends to enable the operator's subscribers throughout all Russian regions to use advanced TV channel packages, additional services and high-definition content.

"This project is of major strategic importance to us, and therefore we needed a partner we can rely on for years to come. Teleste's reliability as a company, combined with its state-of-the-art technology and solid roadmap for the future, forms a strong basis that we can trust. We are very pleased to have Teleste as our important partner," says Dmitry Bagdasaryan, the director for fixed business development, MTS OJSC

The deployment of digital TV headend solution will consist of installing dozens of headends in 90 cities nationwide before the end of 2013.Teleste has started the equipment deliveries already in September 2011, and continued to the end of 2011. The good partnership is expected to continue in 2012. The core of the solution will be formed by the Teleste Luminato video headend platform and the Teleste Broadcast Manager service management and EPG solution. The utilized technology will provide the most compact and flexible solution for delivering a premium-quality digital TV experience and survive long into the future in terms of video and TV service information.

"This is a great continuation of our long and successful history in the digitalisation of TV services in Russia. We are flattered by the trust that MTS, the largest Russian telecom operator, has in us and proud that we have been able to fulfil their requirements both as a corporation and as a technology partner," states Jukka Rinnevaara, President and CEO of Teleste.

Mobile TeleSystems OJSC ("MTS")  is the leading telecommunications group in Russia, Eastern Europe and Central Asia, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services in one of the world's fastest growing regions. Including its subsidiaries, as of December 31, 2010, the Group serviced over 108.1 million mobile subscribers in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, a region that boasts a total population of more than 230 million. The Group's fixed business, as of December 31, 2010, had a total of 9.9 million households passed, 1.8 million broadband Internet and 2.6 million pay-TV subscribers.

MTS has been listed on the New York Stock Exchange since July 2000 and trades under the ticker MBT. The Company's shares have been listed locally on Moscow Interbank Currency Exchange (MICEX) since November 2003 under the symbol MTSI. In 2010, MTS' revenues reached $11.3 billion. According to GSM Association Wireless Intelligence Information Service, MTS ranks as the 2nd largest operator in Europe by proportionate subscriptions at the end of 2010. Additional information about the MTS Group can be found at http://www.mtsgsm.com.

Teleste  is an international technology group founded in 1954, which is specialised in broadband video and data communication systems and services. The group is active in two business segments, Video and Broadband Solutions and Network Services; in both fields, we are among the global leaders. Video is at the core of our business activities, with a focus on the processing, transmission and management of video and data for operators and public authorities who provide multiple video-related information, entertainment and security services to end-users. Video and Broadband Solutions business segment has the emphasis on product solutions for broadband access networks, video service platforms and video surveillance applications. Network Services segment deliver comprehensive network service solutions including new construction, rebuilding, upgrading, planning and maintenance services of cable networks. In 2011 the group's net sales totalled EUR 184 million and the group employed 1319 persons at the year-end. The company has approximately 30 offices world-wide and over 90% of Teleste's net sales are generated outside Finland. The company is listed on the NASDAQ OMX Helsinki Ltd. http://www.teleste.com for more information.

More information:

Valeria Kouzmenko
Press secretary, Mobile TeleSystems OJSC ("MTS")
Tel +7(495)912-32-20
Mobile +7(916)978-02-10
pr@mts.ru

Jukka Rinnevaara,
President and CEO, Teleste Corporation
Tel +358-2-2605611
Mobile +358-400-747488
jukka.rinnevaara@teleste.com