LOCUS PORTAL CORPORATION SET TO LEAD THE RUSSIAN MOBILE POSITIONING MARKET

Mobile TeleSystems, the largest mobile operator in Eastern Europe with more than 16 million subscribers, selects Locus A-MLC mobile positioning system

Helsinki, Finland, January 19, 2004 - Locus Portal Corporation (Locus Portal) announced that the largest mobile operator in Russia and Eastern Europe in terms of subscribers Mobile TeleSystems (MTS) has selected Locus A-MLC mobile positioning platform for commercial use. The delivery was completed during Q4 2003.

Locus A-MLC is a mobile positioning platform, which allows all mobile phones to be positioned by the mobile operator for provisioning of advanced value-added services.

MTS performed an extensive evaluation of available technologies and solutions for the mass market mobile positioning. The evaluation criteria included technology, positioning accuracy, interoperability of the system in MTS network, and the vendor flexibility. Based on the results, MTS chose Locus Portal's solution.

MTS and its partners will launch an extensive set of commercial Location Based Services (LBS) for their subscribers in the near future. Locus A-MLC provides MTS with a telecommunication grade solution with unique high accuracy features, high capacity, location roaming, complete integration to operations systems, and advanced security and management of 3rd party content providers.

"During the evaluation we found out that Locus Portal's technical competence, and the uncompromising attitude to quickly and flexibly adjust to our requirements made Locus Portal to stand out from the other vendors", said Mr. Mikhail Khanov, MTS Research and Development Director.

CTO and a founder of Locus Portal, Mr. Tero Heinonen said: "We are more than pleased with the decision of MTS to select Locus Portal as their location technology vendor. We consider MTS as a strategic development partner rather than just a customer helping us to deliver better and more competitive products to the market. As the core technology of Locus Portal has been proven by many of the largest mobile operators and network infrastructure vendors in the world already, we really have high confidence on that. The choice of MTS is yet another proof of its competitiveness."

According to Mr. Khanov MTS considers location as a key enabler for value-added services portfolio increasing competitiveness of MTS total offering. Locus A-MLC roadmap fits very well with MTS vision and roadmap of 2G, 2.5G and 3G developments providing comprehensive support for all positioning technologies.

CEO and co-founder of Locus Portal, Mr. Samuel Salmenlinna is confident on the continuous increase of sales: "Our revenue has grown 40% every year despite the steep decline of the market. Our strong position in Russia, one of the most rapidly expanding mobile telecommunication markets with over 100% annual growth accelerates the company growth and sets Locus Portal to be a leader in the mobile positioning technology market."

Mr. Ilkka Hiidenheimo, a strategic adviser and a member of Locus Portal Board of Directors, sees the position in the Russian telecommunication market as a high value strategic asset for the company. "We expect consolidation in the location technology and the telecommunication market, and those who can show evidence from the most valuable markets are also the best partners in that process."

About MTS

Mobile TeleSystems OJSC (or "MTS") is the largest mobile phone operator in Russia and Eastern Europe in terms of the number of subscribers. Together with its subsidiaries, the Company services over 15 million subscribers. MTS and its subsidiaries are licensed to provide GSM services in 76 regions of Russia, in the Ukraine and in Belarus, which together have a total population of approximately 186.3 million. Since June 2000, MTS' shares have been listed on the New York Stock Exchange with the ticker symbol MBT. Additional information about MTS can be found on MTS' website at www.mtsgsm.com

About Locus Portal

Locus Portal is a leading independent vendor of smart location products for geographical positioning of mobile phones and other mobile devices. Products are the key elements in Mobile Location Services (MLS), which are value-added data or voice services partly or entirely based on the real-time geographical location of the subscribers. Locus Portal products are high-quality telco-grade software and hardware products designed to provide the best features at a competitive price - offering an unbeatable price/performance benchmark.

Locus Portal products are designed for GSM, GPRS, EDGE, 3G and TETRA networks.

Further information:

CEO Samuel Salmenlinna
Tel. + 358-400-80 5069
E-mail: info@locusportal.com

www.locusportal.com