Moscow, Russia – Mobile TeleSystems PJSC (“MTS” or the “Company” - NYSE: MBT), the leading telecommunications operator in Russia and the CIS, announces the signing of binding agreements to acquire 100% of the shares of NVision Group JSC (“Nvision Group”), the developer and owner of the MTS billing system and one of the largest system integrators and complex IT solutions providers in Russia. In accordance with the agreements, MTS’s wholly-owned subsidiaries will purchase NVision Group from the subsidiaries of Sistema JSFC (LSE: SSA), the parent company of MTS, by the end of 2015 for a total enterprise value up to RUB 15 billion, including debt.

In the first stage of the transaction, MTS has acquired NVision Group subsidiaries, including 100% of the shares of SITRONICS Telecom Solutions CJSC and NVision Czech Republic a.s. Through this transaction, MTS has obtained control over its billing system, which will allow the Company to reduce time-to-market for new products and reduce billing and IT-related expenses.

Mr. Andrei Dubovskov, MTS President and CEO, commented, “The acquisition of NVision Group is in line with MTS’s 3D strategy to leverage our data leadership and focus on differentiation in the marketplace. NVision Group’s unique expertise will enable us to accomplish three key objectives: improve service for MTS subscribers through enhancements to our billing platform; strengthen our position in the corporate market by offering clients complementary IT and integration solutions; and reduce spending on in-house IT through the realization of economies of scale. We expect to benefit from our entrance into the promising and fast-growing market of IT services, IT consulting and system integration, which complements our core service businesses.”

Mr. Andrei Ushatskiy, MTS Vice President, Technology and IT, added, “NVision Group possesses vast experience in the implementation of IT projects in the telecom, finance, energy, and healthcare industries. Its portfolio features projects for over 200 customers, and the company sustains high-level partnerships with the world’s leading software developers and equipment vendors. NVision is able to complete complex turnkey projects and provide support for a wide range of customers, including projects for the deployment of IT-infrastructure, implementation of control systems, reengineering and automation of business processes, build-out of complex IT security systems, along with niche services using cloud model. The integration of these capabilities within MTS Group allows MTS to offer its corporate clients a full range of IT services, including M2M solutions, cloud computing and big data analytics.”

The transaction was approved by the MTS Board of Directors and the Special Committee of independent directors under the MTS Board of Directors. Merrill Lynch International acted as financial adviser to the Special Committee to issue a Fairness Opinion on the transaction. Cleary Gottlieb Steen & Hamilton LLP, KPMG and Liniya Prava provided advice on the transaction.

First stage of the transaction was approved by the Federal Antimonopoly Service of Russia (FAS) and the antimonopoly authorities of Uzbekistan and Pakistan where NVision Group’s subsidiaries operate. MTS has also filed applications to antimonopoly authorities in other countries of NVision Group’s presence for further approvals.

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For further information, please contact in Moscow:

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