Moscow, Russian Federation — Mobile TeleSystems OJSC (‘MTS’ — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, has successfully secured financing from Sberbank through two loans in the amount of RUB 47 billion and RUB 12 billion.

The loan of RUB 47 billion boasts a maturity in September 2013 with an annual interest rate of 16%. The funds will used for MTS’ overall investment programs, including funding of the SPV for the pending acquisition of a 50.91% stake in COMSTAR-UTS, a leading supplier of integrated telecommunication solutions in Russia and the CIS. The closing of the COMSTAR-UTS transaction is anticipated for October 2009.

Separately, the company drew an additional loan from Sberbank in August 2009 for RUB 12 billion with a two-year maturity and an annual interest rate of 15%. The funds will be used to support our capital expenditures program and other corporate needs.