Moscow, Russian Federation — Mobile TeleSystems OJSC (“MTS” or the “Company” — NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has become aware that Uzbek authorities, having failed to dispose of the assets of Uzdunrobita, MTS's wholly owned subsidiary in Uzbekistan, by way of two rounds of auctions, have reached out directly to Uzdunrobita creditors offering to purchase assets of Uzdunrobita.

MTS understands that the liquidation administrator has now proposed that the creditors of Uzdunrobita purchase these assets. Should this proposal not succeed, the liquidation administrator may transfer all of the assets of Uzdunrobita to local authorities.

MTS states again that the claims of the Uzbek authorities and actions in Uzbekistan, which resulted in the initiation of bankruptcy proceedings and attempts to sell Uzdunrobita’s assets, have no legal or factual basis. MTS reserves the right to pursue available legal options in Uzbekistan and internationally to defend its legal rights and protect its investments. In addition, MTS will seek to fully recover damages or obtain other relief from any party involved in depriving MTS of its business and assets in Uzbekistan.

Previously, MTS filed a claim against the Republic of Uzbekistan in the International Center for Settlement of Investment Disputes (ICSID), part of the World Bank Group, in Washington, D.C. The claim was registered on November 15, 2012, and the case is currently pending.

On January 14, 2013, Uzdunrobita was forced to file a petition for voluntary bankruptcy due to its inability to fulfill obligations pursuant to the decisions of the Ubzekistan courts, which determined the total amount of fines and penalties to be paid by Uzdunrobita to be at approximately $600 million. On April 22, 2013, the Tashkent Commercial Court declared Uzdunrobita bankrupt and initiated liquidation procedures. Between July 01, 2013, and July 31, 2013, two rounds of auctions to sell the assets of the Uzdunrobita and all of its branches were held. The auctions failed as no applications were submitted.

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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

Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/