Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that MTS’ non-executive director Paul James Ostling has been honored with a “Director of the Year” award sponsored by the Association of Independent Directors. Mr. Ostling won in the nomination “Independent Director”.

The judging committee, composed of representatives from Russian governmental agencies, international organizations and leading Russian companies, awarded Paul Ostling for his achievements in promoting standards of corporate governance and transparency as a member of the MTS board and a head of the MTS audit committee and the committee for remuneration and appointments. The judging committee highlighted Mr. Ostling’s contribution in building a system of senior management compensation aligned with the performance of the company.

In his speech Mr. Ostling thanked the Association for their appreciation of his contribution and commented, “When compared to peer companies on international exchanges, Russian stocks are traded at a 20-30% discount. This can be attributed to the perception that Russian assets are high-risk. However, implementation of world-class best practices in corporate governance, advancement of the role of independent directors, and greater transparency of Russian companies can and will change this attitude. Better corporate governance in Russia will not only enable Russia to attract foreign investment, but will also help to boost the Russian economy and improve the welfare of the nation.”