Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, has completed the placement of Series 07 and Series 08 ruble-denominated bonds totaling RUB 25 billion on November 16, 2010. The bonds will be listed in the “A1” quotation list on the Moscow Interbank Currency Exchange (MICEX).

The Series 07 bond in the amount of RUB 10 billion was placed with a semi-annual coupon rate of 8.70% and ŕ 2017 maturity. The Series 08 bond in the amount of RUB 15 billion carries a semi-annual coupon rate of 8.15% with ŕ 2020 maturity and a five year put option. The placement was 1.6 times oversubscribed. Both issues had a wide distribution of more than 70 investors.

Commented Alexey Kornya, Vice President and Chief Financial Officer of MTS, ”In spite of volatile market conditions, the placement witnessed high demand with around 100 orders totaling more than RUB 41 billion received. On the back of this demand the initial marketing ranges were moved downward and the order books were closed at the lower ends of the new ranges – at 8.15% and 8.70% respectively.”

He continued, “This was a pioneering placement. The coupon rate on the five-year bond was the lowest when compared to the peers and to the issuers with the similar rating, which we see as market recognition of MTS’ credit quality. The seven-year placement indicates that markets are open for private, high-quality issuers seeking long-term financing; previously only quasi-sovereign issuers had managed to place seven year bonds.”

Lead Arrangers of the bonds were VTB Capital, Gazprombank, the Bank of Moscow and Sberbank. Funds raised through the placement will be used for debt portfolio optimization and other corporate needs.