Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the acquisition of a 100% stake in Zheleznogorsk City Telephone Communications CJSC (“ZhelGorTeleCom”), the leading fixed broadband provided in Zheleznogorsk, the second largest city in the Kursk Oblast, from private investors. The purchase price, including net debt, amounts to 152 million rubles.

ZhelGorTeleCom has been active in the Zheleznogorsk market since 2004. It has a 58% market share in the fixed broadband market in the city. Operator’s FTTB (Fiber-To-The-Building) network covers 98% of the households.

“MTS offers fixed-line services in Kursk and is the leading provider of pay-TV in the city. As a leading integrated telecommunications provider, we seek to expand the range of services in the region. MTS will leverage ZhelGorTeleCom’s FTTB infrastructure to introduce innovative products and services, including digital TV and convergent offerings,” commented Dmitry Rylov, Director of ’MTS Center Macro Region’.

ZhelGorTeleCom’s financial results will be consolidated in the Company's financial statements beginning from October 23, 2012.

Overall, MTS Group offers fixed-line services in over 150 cities throughout Russia.

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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/