Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the redemption of its $400 million Eurobond which matured on January 28, 2012.

The bond was redeemed using the Company’s available cash reserves. Coupon payments for the entire period, including the last coupon, which took place simultaneously with the issuance of repayments, amounted to $224 million. The Eurobond was issued in January 2005 in the amount of $400 million with a semi-annual coupon rate of 8%. Payment was made by Mobile TeleSystems OJSC as guarantor under the terms of the Indenture.

The capital raised through the bond placement was used for corporate purposes, including the financing of the Company’s acquisition program in Russia and the CIS at the time.

The Company’s total debt as of Q3 2011 stood at $7,249.7 million. MTS has one other Eurobond issue currently outstanding: a $750 million 8.625% MTS International Funding Limited bond placed in June 2010 with maturity in 2020.