Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or "the Company" – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the redemption of its series 04 ruble-denominated bond in the amount of RUB 15 billion.

The RUB 15 billion series 04 ruble-denominated bond with maturity on May 13, 2014 and a two-year put option was issued on May 19, 2009. The coupon was to be paid annually at the rate of 16.75%. On May 11, 2011, the Company reduced the coupon rate to 7.6%. On May 19, 2011, the Company repurchased approximately RUB 1.1 billion of outstanding notes of bond.

VTB Capital, Gazprombank and Sberbank CIB were Lead Arrangers of the bond.

The bond has been part of the "A1" quotation list on the Moscow Exchange since April 2010.

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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