Ad Hoc Notice
13 August 2012
Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications operator in Russia and the CIS, announces that on August 13, 2012, the Tashkent Commercial Court granted petition of the State Agency for Communications and Information of Uzbekistan (“SACI”, the “Regulator”) to withdraw all operating licenses of Uzdunrobita FE LLC (“Uzdunrobita” or “MTS-Uzbekistan”), MTS’s wholly owned subsidiary in Uzbekistan. Uzdunrobita intends to appeal the decision within the timeframe set forth by the laws of the Republic of Uzbekistan.
MTS also announces that it has received the content of 16 findings of the tax audits conducted by Uzbekistan tax authorities. Notwithstanding the fact that tax audit of Uzdunrobita’s operations for the period of 2007–2010 was completed in February 2012 and did not reveal any serious violations, additional tax audits have resulted in a total amount of claims against the Company in excess of $900 million. Uzdunrobita intends to challenge these findings.
Since the acquisition of Uzdunrobita in 2004, MTS has duly complied with the requirements of the laws of Uzbekistan, a fact which has been confirmed by numerous audits conducted by the SACI and other regulatory bodies of Uzbekistan. Simultaneous audits of Uzdunrobita’s operations were conducted from June through August 2012 in violation of the laws of Uzbekistan and international norms.
Uzdunrobita has filed an appeal to challenge the decision of the Tashkent Commercial Court, dating from July 30, 2012, to suspend Uzdunrobita’s license for a period of three months. The petition will be considered within a month’s timeframe. Uzdunrobita has also filed a petition to the State Antimonopoly Committee of Uzbekistan to challenge the decisions of the antimonopoly bodies, which declared that Uzdunrobita infringed upon antimonopoly laws, consumer protection laws and laws governing advertisements. The petition will be considered within a month’s timeframe.
MTS reserves the right to initiate proceedings both in Uzbekistan and internationally, including proceedings against certain officials involved in illegal actions against the Company, to claim damages incurred by MTS Group.
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
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/