Ad Hoc Notice

25 October 2012

Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications operator in Russia and the CIS, announces the resignation of Mr. Paul Ostling from the Board of Directors of MTS.

Mr. Ostling had served as a non-executive independent director on the Board of Directors of MTS for over five years. During his tenure, he has served as Chairman of both the Auditing Committee and Committee for Remuneration and Appointments. He is leaving MTS to devote himself more fully to other commercial activities.

Ron Sommer, Chairman of the Board of Directors, remarked, “The members of the Board are grateful for Paul’s contribution to the development of the Board during a period of dynamic transformation as MTS evolved from a pure mobile player into the region's leading integrated telecommunications provider. We wish Paul the best as he pursues his other ventures.”

Under Russian law, Mr. Ostling will legally remain as a ‘resigned non-executive director’ on the Board, though he has disavowed any on-going involvement in the Board’s activities. Mr. Ostling’s position on the Board will remain vacant until a new nominee is proposed at a future Extraordinary General Shareholders’ Meeting (EGM), which is scheduled for 14 February 2012. In the meantime, his duties will be assumed by Messrs. Stanley Miller and Gregor Harter, the two remaining non-executive independent directors. In according with the decisions of the MTS Board of Directors held on October 24, 2012, Mr. Miller was elected as Chairman of both the Auditing Committee and Committee on Appointments and Remunerations.

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 nearly 100 million mobile subscribers. The Group has been awarded GSM licenses in Russia, Ukraine, 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, 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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