Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the redemption of its $400 million Eurobond which matured on October 13, 2010.

The bond was redeemed using the Company’s available cash reserves. Coupon payments for the entire period, including the last coupon, which took place simultaneously with the issuance of repayments, amounted to $234.5 million. The Eurobond was issued in October 2003 in the amount of $400 million with a semi-annual coupon rate of 8.375%.

The capital raised through the bond placement was used for corporate purposes, including the financing of the Company’s acquisition program in Russia and the CIS at the time.

The Company’s total debt as of Q2 2010 stood at $7,267.4 million. MTS has two further Eurobond issues currently outstanding: a $400 million 8% Mobile TeleSystems Finance SA bond placed in January 2005 with maturity in 2012, and a $750 million 8.625% MTS International Funding Limited bond placed in June 2010 with maturity in 2020.