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MTS Launches Innovative Solution to Optimize Mobile Internet

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Flash Networks
7 Sapir Road
Herzelia, 46733
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Press release date: November 21, 2011

MOSCOW - Mobile TeleSystems (MTS - NYSE: MBT), the leading telecommunications operator in Russia and the CIS countries, announced the deployment of Flash Networks' Harmony Mobile Internet Services Gateway to optimize the volume of mobile data traffic. With this deployment, MTS is able to reduce content and web page download times and increase mobile Internet speed.

Flash Networks' Harmony optimizes picture, video, and other mobile data to ensure the fastest possible download speed regardless of which mobile device is used to connect to the Internet - mobile phone, tablet, or PC via 3G-modem. In order to reduce mobile network traffic load while viewing a video stream, Harmony applies a special buffering mechanism to allow users to watch video streams as they load, without downloading the entire video.

MTS launched a pilot project to test the technology for all customers in Murmansk. By the end of 2011, the new traffic optimization technology will be available to all users of the MTS unlimited mobile Internet in Russia. The solution was developed by Flash Networks and integrated in MTS' network together with the Russian system integrator Technoserv.

"The solution introduced by MTS will provide our customers with faster and more convenient Internet access as the up-to-date text and multimedia compression technology applied by Flash Networks optimizes data in a way practically imperceptible to the human eye," said Sergei Stepanyuk, Head of Data Transmission Department at MTS. "Using the data optimization platform allows us to reduce our mobile network data transmission load by almost 40% and our transit load by 30%, ultimately resulting in faster Internet speeds and better quality of data services for our users."

"We are pleased to offer MTS the most advanced solution for managing traffic while providing mobile Internet services. Harmony enables MTS to optimize up to 90% of its mobile Internet traffic, including web and video applications, and to provide complete data services to its subscribers," said Merav Bahat, Vice President of Marketing and Business Development at Flash Networks. "MTS has earned a reputation as one of the most innovative operators in Russia and the CIS countries. By choosing our solution, they have significantly strengthened their leading role in wireless data transmission services."

"Having deployed the Harmony solution, MTS has further advanced its line of projects aimed at data traffic management. These projects will not only significantly improve the quality of services provided to their clients, but will also considerably optimize the cost of traffic. Technoserv, together with its partners, has been helping MTS deploy the most up-to-date and efficient solutions for more than six years, and we believe that this project will lead to the successful development of further business," said Andrey Borodin, Technoserv Account Director for JSFC "Sistema".

About MTS
Mobile TeleSystems (MTS), a publicly-traded company, is the leading telecommunications operator in Russia and the CIS countries. The company and its subsidiaries provide services to more than 100 million subscribers. The population of all regions of Russia, and of Armenia, Belarus, Ukraine, Uzbekistan, and Turkmenistan, where MTS and its subsidiaries are licensed to provide GSM services, is more than 230 million people. Since June 2000 MTS shares have been listed on the New York Stock Exchange under the symbol MBT. In 2011, for the fourth year running, the MTS brand was recognized as the most expensive Russian brand among the top 100 leading world brands in the BRANDZ(TM) ratings, published by the Financial Times and the international research agency Millward Brown.

About Flash Networks
Flash Networks is a global provider of intelligent mobile Internet solutions that enable operators to improve quality of experience, reduce network operational expenses, and manage and monetize the mobile Internet. Providing a faster, safer, richer, and more personalized user experience, Flash Networks' Harmony Mobile Internet Services Gateway helps operators achieve significant cost savings through intelligent data traffic optimization, and applies intelligent policies for targeted marketing and charging. With offices in Europe, Asia, and North America, Flash Networks' installed base of top-tier mobile carriers includes MTS, O2, Orange, SingTel Group, T-Mobile, Telefonica, and Wind. For more information, visit www.flashnetworks.com.

About Technoserv
Technoserv is the leading provider of products and technologies and the largest Russian company dedicated to system integration, IT-services and creation of engineering facilities. Technoserv was founded in 1992 to market, install and support big computer systems. Now the company's solutions span various areas of IT-industry and engineering including IT-infrastructure, networking and applications, as well as IT-audit, consulting and outsourcing. Technoserv 2010 full-year turnover - RUB 33,52 bln.

We have local offices in Yekaterinburg, Krasnodar, Nizhny Novgorod, Novosibirsk, Saint-Petersburg, Volgograd, Vladivostok, Baku (Azerbaijani), Kiev (Ukraine), Minsk (Belarus), Tashkent (Uzbekistan), Almaty (Kazakhstan) and Yerevan (Armenia). Technoserv is a powerful team of over 2000 IT professionals. Since 1992 Technoserv has developed and brought to life over 5000 large scale projects.

CONTACTS:
Flash Networks
Naomi Rabbie
Phone: +972-9-961-0841
Mobile: +972-54-7744539
naomir@flashnetworks.com

Spicetree Communications
Monica Maron
Mobile: +972-545-429-529
monica.maron@spicetreecom.com

SOURCE Flash Networks

Web Site: http://www.flashnetworks.com
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