MTS Acquires Eurotel

24 December 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 a 100% stake in OAO Eurotel (Eurotel), one of the leading federal transit operators in Russia, from Mortfield Holdings Limited (Cyprus).

The purchase price amounts to $110 million with a portion payable by the end of February 2011 should the company satisfy certain conditions set forth in the agreement.

Eurotel has an extensive optical fiber network of 19.5 thousand km. The network currently connects such major cities as Moscow, Saint-Petersburg, Cherepovets, Petrozavodsk, Vologda, Krasnodar, Sochi, Novorossiysk, Ryazan, Tambov, Penza, Ulyanovsk, Samara, Ufa, Chelyabinsk, Yekaterinburg, Tyumen, Omsk, Krasnoyarsk and Novosibirsk. The network is operated using the Dense Wavelength-Division Multiplexing (DWDM) technology. Following the transaction, MTS’ network  now extends to around 35 thousand km.

Mr. Mikhail Shamolin, President and CEO of MTS, highlighted, “The acquisition will help us better realize our 3i Strategy as we look to provide our subscribers with the best possible customer experience. The build-out of our own federal backbone network will allow us to accommodate for the increasing demand levels for data services, as we roll out 3G, and to realize OPEX savings on line rental by decreasing our reliance on other companies’ networks. It will also create a platform that will enable us to launch innovative new services in the future.”

Eurotel’s financial results will be consolidated in the Company’s financial statements beginning from December 23, 2009.

For further information, please contact:

Joshua B. Tulgan
Director, Investor Relations
Mob: +7 985 220 4208

Department of Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025

Learn more about MTS. Visit the official blog of the Investor Relations Department at
Mobile TeleSystems OJSC (“MTS”) is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 97.11 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).

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

MTS Investor Relations
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