MTS, Altimo and Nomihold Reach Settlement Over Bitel

25 June 2013

Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecom operator in Russia and CIS, and Altimo Holdings and Investments Limited (a BVI company) and Altimo LLC (Russian company) (collectively “Altimo”), a telecom arm of Alfa Group, announced that an agreement has been reached between Altimo, MTS and Nomihold Securities Inc. (‘‘Nomihold’’) and other associated parties to settle all disputes that have arisen from investment in Bitel LLC, formerly the leading mobile telephony operator in the Kyrgyz Republic.

The agreement covers matters involving a number of parties and legal proceedings, including those in the Isle of Man, London, Luxembourg and the Seychelles. Pursuant to the agreement all proceedings between the parties, and their associated parties, have been discontinued and waived, and MTS shall receive a total payment up to $150 million, including an amount of $125 million which has been received by MTS as of the date hereof. All parties will make the necessary submissions to the respective courts and tribunals to document the settlement, which, among other actions, would fully discharge any and all outstanding obligations under the award rendered by the London Court of International Arbitration (LCIA) against MTS Finance SA ("MTSF"), a subsidiary of MTS, in January 2011, as well as settle the tripartite arbitration between MTS, MTSF and Nomihold and a tort action filed by Nomihold against MTS in the English Courts.

Altimo and MTS have acknowledged the importance of finding a commercial solution that will allow them to focus fully on their goals of developing their respective telecommunications markets throughout the world.

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Corporate Finance & 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 100 million mobile subscribers in Russia, Ukraine, Turkmenistan, Armenia and Belarus, a region that boasts a total population of more than 200 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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