Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or “the Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the Board of Directors (“BoD” or “the Board”) has approved a new dividend policy that may allow MTS to payout over RUB 40 billion in dividends to shareholders in 2013.

At a meeting held today, the Board approved a new dividend policy, which stipulates that for the calendar years 2013-2015, MTS aims to payout a minimum dividend distribution of an amount equal to at least 75% of Free Cash Flow for the relevant financial period or, if greater, RUB 40.0 billion per year. The Board also recommended that MTS begin to payout dividends on a semi-annual basis using interim H1 and full-year financial results.

As a result, the Board recommended that an annual general meeting of shareholders (“the AGM”) approve annual dividends of RUB 14.6 per ordinary MTS share (approximately RUB 29.2 per ADR) for the 2012 fiscal year, amounting to a total of RUB 30.2 billion¹. In addition, the Board advised that MTS consider a semi-annual dividend payout of up to RUB 11 billion on the basis of its H1 2013 financial and operating results, which should become available in autumn 2013. Overall, this payout could increase the cumulative amount returned to investors in 2013 by over 35% relative to 2012.

The Board set the date for the Company’s AGM for Tuesday, June 25, 2013. The record date for the Company’s shareholders and ADR-holders entitled to participate in the AGM and to receive dividends for the year 2012 has been set for Wednesday, May 8, 2013. The dividend will be paid out in the period of two months following the approval of the AGM in accordance with Russian law.

In addition, issues entered into the AGM agenda by the BoD include among others:

• Procedure for conducting the Annual General Shareholders Meeting
• Approval of MTS OJSC Annual Report; MTS OJSC Annual Financial Statements, including MTS OJSC Profit & Loss Statement; distribution of profits and losses of MTS OJSC based on 2012FY results (including payment of dividends);
• Election of members of MTS OJSC Board of Directors;
• Election of members of MTS OJSC Auditing Commission;
• Approval of MTS OJSC auditor;
• Approval of MTS OJSC Charter as amended and restated;
• Approval of the Regulations of MTS OJSC General Shareholders Meeting as amended and restated;
• Approval of the Regulations of MTS OJSC Board of Directors as amended and restated;
• Approval of the Regulations of MTS OJSC Management Board as amended and restated;
• Approval of the Regulations of MTS OJSC President as amended and restated.