Moscow, Russian Federation — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has signed a binding agreement with MTS Bank OJSC (“MTS Bank”) to acquire 952,000 ordinary shares of the Bank's additional shares issuance for RUB 3,639,286,560.

On October 30, 2014, Sistema, the largest shareholder of MTS Bank, announced the signing of a binding agreement with MTS Bank to acquire 2,474,818 ordinary shares of the Bank's additional shares issuance for RUB 9,460,684,754. Both Sistema and MTS participate in the additional share of issuance of MTS bank in proportion to their current direct ownership stakes.

The deal is expected to be finalized by the end of 2014 upon fulfillment of all conditions as set out in the shares issuance documentation.

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Corporate Finance & Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru