Mobile TeleSystems OJSC, the largest mobile phone operator in Russia and the CIS, announced its second quarter 2007 financial and operating results.

Mobile TeleSystems OJSC (MTS) owns fully owns MTS-Uzbekistan, which worked under Uzdunrobita brand till June 2006. MTS acquired 74% stake in Uzdunrobita in 2004 for US$121 million and purchased 26% stake in Uzbek company for US$250 million in 2007.

MTS is leader in Uzbek market. During the quarter mobile penetration in Uzbekistan increased from 11% to 13%, the Russian company said. Approximately 250,000 subscribers joined MTS-Uzbekistan in the reporting period and total subscribers’ base made up 1.95 million. MTS’ market share in Uzbekistan was at 56%.

Revenues in Uzbekistan in the second quarter added US$57 million to the company’s consolidated revenues (up 105% y-o-y), US$37 million to its consolidated OIBDA (up 130% y-o-y) with an OIBDA margin of 64.4%, and US$17 million to its consolidated net income (up 233% y-o-y).

Operating income before depreciation and amortization (OIBDA) represents operating income before depreciation and amortization. OIBDA margin is defined as OIBDA as a percentage of net revenues.

Second quarter ARPU was US$10.4, a slight increase from US$10.3 in the previous quarter. Average monthly service revenue per subscriber (ARPU) is calculated by dividing service revenues for a given period, including interconnect and guest roaming fees, by the average number of our subscribers during that period and dividing by the number of months in that period.

Second quarter MOU was 549 minutes, an increase from 463 minutes in the previous quarter. Average monthly minutes of usage per subscriber (MOU) is calculated by dividing the total number of minutes of usage during a given period by the average number of our subscribers during the period and dividing by the number of months in that period.

MTS’ expenditure on property, plant and equipment in Uzbekistan in the second quarter totaled US$5 million and investments to intangible assets made up US$5 million in Uzbekistan, the company said.