Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that the MTS Group through Comstar-Regions, a wholly-owned subsidiary of Comstar-UTS, has acquired 100% in Lanck Telecom LLC (“Lanck Telecom”), an alternative operator in Saint Petersburg, from a group of private investors. The acquisition allows MTS Group to strengthen its position in the Saint Petersburg corporate market.

The purchase price was RUB 547.4 million ($17.9 million¹ ). In addition, Lanck Telecom has net debt of RUB 227.6 million ($7.4 million).

Lanck Telecom provides broadband Internet and fixed-line services with a focus on the corporate segment. The company has more than 900 kilometers of fiber optic cable and services more than 1 million square meters of commercial real estate. The company currently has approximately 8,000 broadband Internet and 5,000 fixed-line subscribers.

Lanck Telecom’s financial results will be consolidated in MTS’ financial statements beginning from December 23, 2010.