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December 4, 2006

CyberPlat® Becomes Member of World GSM Association

The event has proved to be a well-deserved acknowledgement of the Company’s contribution to the development of the Russian cellular communication market, as well as of the supreme service quality.

GSMThe Company is one of the most active participants in the modern mobile telecommunications market of Russia. By the results of 10 months of the current year alone, the turnover of electronic payments executed via the CyberPlat® system exceeded 2 billion US dollars. It is the payments for mobile communication services that comprise over 97% of the CyberPlat® payment system’s turnover. Particularly, CyberPlat® collects more than 20% of all earnings for Mobile TeleSystems–Russia, upward of 25% – for MegaFon, for Beeline – 24% of the company’s earnings in Russia, and some 10% in Kazakhstan.

“CyberPlat® is historically the first and the largest electronic payment system of Russia. Our system is unique technologically; and at the same time, its operation is built on the principles of social responsibility,” Andrew Gribov, CEO of CYBERPLAT.COM, remarks. “We are oriented on providing top quality services, compliant to the ever challenging demands of the modern mobile telecommunications market. For example, by the fault tolerance indicator, we outperform the nearest competitor 5 times. Today, our system needs only several seconds to top up a subscriber personal account. It is this level of quality that is in high demand both in Russia and in the world as a whole.

For the past years, we have achieved significant success and considerably expanded our business. By the results of the current year, another record increase in the volume of payments will be registered; that will establish the CyberPlat®’s lead in the e-commerce market. The expected annual turnover will exceed 2 billion 500 million US dollars. This is a manifestation of trust to our System on the part of our partners – the largest telecommunications and retail chain operators, working in all market price segments; that enables totally different populations to take advantage of all the basic mobile communication services. As it is, CyberPlat® allows for executing petty payments, as little as one ruble, which is exceptionally important for people with low incomes; for whom, our System has made modern mobile communications affordable.

I am proud to mention that, presently, our achievements have been acknowledged by the international community, and our accession to the GSM Association is a logical result of our systematic endeavor and daring aspirations.”

As of today, the success of the largest Russian broad-based payment system, CyberPlat®, have been truly approved and established on the top international level; and the accession to the GSM Association, as a member, will become a new milestone in the Company’s development. The participants of the Congress highly appraised the prospects of the CyberPlat® System for international development. Such world IT-technology leaders as Microsoft Corporation, Samsung Electronics Co. Ltd, Hewlett Packard Company, Siemens AG, Alcatel, Cisco Systems, Microsoft Corporation, Samsung Electronics Co. Ltd, Hewlett Packard Company became associate members as well in their own time.

GSM Association

GSM Association was created in 1987. As a world trade association, it unites over 700 GSM mobile communication operators embracing 214 countries. The Association’s main task is the facilitation of the universal, easy and uninterrupted access to mobile telecommunications and supplementary communication services. GSM Association pursues the creation of optimal conditions for the global international development and universal penetration of mobile telephony. At present, the members of GSM Association render services to over two billion customers, which comprises over 80 % of all mobile handset owners.

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