Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that the Company has acquired a 100% stake in LLC “Elf” and a 100% stake in LLC “Efcom” operating under “Elf” brand (“Elf”) from a private investor. The purchase price amounts to 220 million rubles.

Elf offers fixed broadband and pay-TV services in Belgorod and the Belgorod region. Elf’s network covers 51,000 households passed. It has over 18,000 broadband subscribers and over 33,000 pay-TV subscribers. This acquisition allows MTS to assume a leadership position in Belgorod by increasing network coverage up to 95% of the households.

"With this acquisition MTS becomes the leading provider of fixed broadband and Pay-TV in Belgorod. Combining MTS’s and Elf’s network infrastructure will permit a significant reduction in costs to enhance our networks and allow us to bring high-speed Internet and cable TV services to almost every household in Belgorod," commented Dmitry Rylov, Director of “MTS Center Macro Region.”

Elf’s financial results will be consolidated in the Company's financial statements beginning from August 17, 2012.

Overall, MTS Group offers fixed-line services in over 150 cities throughout Russia.