MTS Increases Ownership in its Dagestan Subsidiary to 100%

26 February 2009

Moscow, Russian Federation — Mobile TeleSystems OJSC («MTS» — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has acquired the remaining 25.01% stake in its subsidiary in Dagestan from Glaxen Corp., increasing the Company’s ownership to 100%.

MTS has purchased an additional 25.01% stake in Dagtelecom, LLC, for $41.56 million as Glaxen Corp. (BVI) exercised its put option. Purchase price shall be reduced by $12.5 million to offset the loan extended by MTS to Glaxen Corp. in spring 2008. In addition, following the review and assessment of the subsidiary’s performance during the period of the joint shareholding of MTS and Glaxen Corp. in Dagtelecom, MTS may potentially pay a premium in the amount not exceeding $10 million.

Earlier in July 2006, MTS purchased a 74.99% controlling stake in Dagtelecom and entered into the option agreement for the remaining stake.

Dagtelecom provides GSM 900 services under the MTS brand and is one of the leading wireless service providers in the Dagestan region with a population of 2.6 million, located in Southern Russia. As of December 31, 2008, Dagtelecom served around 449,000 subscribers.

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For further information, please contact:

Mobile TeleSystems, Moscow
Investor Relations
Tel: +7 495 223 2025
E-mail: ir@mts.ru

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Mobile TeleSystems OJSC («MTS») is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 91.40 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS? Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS can be found on MTS? website at www.mtsgsm.com.

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U. S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as «expect,» «believe,» «anticipate,» «estimate,» «intend,» «will,» «could,» «may» or «might,» and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U. S. Securities and Exchange Commission, specifically the Company?s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned «Risk Factors» that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks..

Contact investor relations:

+ 7 495 223 20 25 ir@mts.ru

MTS Investor Relations
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