MTS Launches 3G Networks in All Markets of Operation

02 November 2010

Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the commercial launch of its 3G network in Turkmenistan that completes the deployment of "third generation" networks in all markets of operation of the MTS Group. Today, MTS offers high-speed mobile Internet access to residents and visitors throughout Russia, Uzbekistan, Ukraine, Belarus, Armenia and Turkmenistan.

In Russia, the Company’s 3G network was launched in May 2008. Mobile broadband is now available to MTS subscribers in more than 360 cities across the country. In Ukraine, MTS’ CDMA network provides data transfer rates of up to 3.1 Mbps and covers more than 200 regional centers. In Uzbekistan, MTS launched its 3G network into commercial operation in December 2008 and now provides coverage in Tashkent, Samarkand, Bukhara, Urgench and Khiva. The employed HSDPA technology delivers data transfer rates of up to 3.6 Mbps enabling innovative services such as video calling. The first VivaCell-MTS 3G network was launched in April 2009 in the three largest Armenian cities – Yerevan, Gyumri and Vanadzor. The HSPA/UMTS technology in Armenia provides for data transfer speeds of up to 7.2 Mbps with the MTS network covering about 93% of population in 650 localities. In Yerevan, the network is based on the more advanced HSPA+ technology that allows for speeds of up to 21.6 Mbps.

In Turkmenistan, MTS’ 3G network currently covers the center of Ashgabat, the capital city of the republic, as well as the surrounding area of the international airport. MTS Turkmenistan subscribers will be able to access Internet with download speeds of up to 21 Mbps and upload speeds of up to 11 Mbps. The Company plans to launch its 3G network in Turkmenbashi City in the near future and will continue the build-out so as to cover all of the provincial centers.

"The commercial launch of the HSPA + 3G network is a major milestone for MTS Turkmenistan and MTS Group as a whole. MTS is now offering its subscribers a qualitatively new level of broadband Internet access and data sharing. The significant increase in mobile Internet usage in countries with 3G coverage indicates that there is a great demand for broadband Internet access that creates a powerful incentive for the further development of innovative technologies. We plan to expand our next-generation networks, increase coverage areas and provide innovative services with the aim of enhancing possibilities for mobile communications in all countries where we operate,” commented Oleg Raspopov, MTS Vice President and Head of Business Unit "MTS Foreign Subsidiaries".

Total capital expenditures (CAPEX) of the MTS Group in the first half of 2010 amounted to $566 million. The Company expects an increase in CAPEX in the second half of 2010 and maintains its previous CAPEX guidance of 22-24% of revenue for the full year 2010.

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Investor Relations
Acting Director, Corporate Finance

Department of Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru

Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/

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Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Eastern Europe and Central Asia, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services in one of the world's fastest growing regions. Including its subsidiaries, the Group services over 105.2 million mobile subscribers in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, a region that boasts 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 the MTS Group can be found 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 undertake or 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, the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, including Comstar-UTS, 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, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.

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Contact investor relations:

+ 7 495 223 20 25 ir@mts.ru

MTS Investor Relations
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