DEGA RETAIL HOLDING LIMITED ANNOUNCES TENDER OFFER RESULTS

On 15 June 2016, Dega Retail Holding Limited (the “Offeror”) launched an offer on behalf, and at the instruction, of Mobile TeleSystems Public Joint Stock Company (the “Company”) to the holders of the outstanding U.S.$750,000,000 8.625 per cent. Loan Participation Notes due 2020 (the “Notes”) issued by, but with limited recourse to, MTS International Funding Limited (the “Issuer”) for the sole purpose of financing a loan to the Company, to tender any and all of the outstanding Notes for purchase by the Offeror for cash (the “Tender Offer”), subject to the terms and conditions set out in the Tender Offer Memorandum dated 15 June 2016 (the “Tender Offer Memorandum”) prepared by the Offeror. Capitalised terms used in this announcement but not defined have the meanings given to them in the Tender Offer Memorandum.

The Offeror hereby informs Noteholders that as at 5:00 p.m. (NYC time) on 23 June 2016 (the “Expiration Deadline”) the aggregate principal amount of Notes validly tendered pursuant to the Tender Offer and accepted for purchase by the Offeror is as follows:

¹Notes that are currently held by the Company and/or its subsidiaries are not considered “outstanding” for purposes of this table.

Payment Date

Subject to the conditions described in the Tender Offer Memorandum, the Offeror will pay to the relevant Noteholders on or before 28 June 2016 (the “Payment Date”) (a) the Purchase Price for the validly tendered and accepted Notes, and (b) the Accrued Interest Amount from (and including) the immediately preceding interest payment date for the Notes to (but excluding) the Payment Date.

The Tender Offer has now expired and no further Notes can be tendered for purchase.

The Notes purchased pursuant to the Tender Offer will be held by the Offeror for its own account. Notes that have not been successfully tendered for purchase and accepted by the Offeror pursuant to the Tender Offer and the terms and conditions set out in the Tender Offer Memorandum will remain outstanding and will remain subject to the terms and conditions of such Notes.

Further Information

The Offeror has retained J.P. Morgan Securities plc and VTB Capital plc to act as the Dealer Managers (the “Dealer Managers”) and Lucid Issuer Services Limited to act as the Information and Tender Agent (the “Information and Tender Agent”). Questions or requests for assistance concerning the terms of the Tender Offer should be directed to the Dealer Managers at:

J.P. Morgan Securities plc
25 Bank Street
Canary Wharf
London E14 5JP
United Kingdom

For information by telephone: +44 20 7134 2468
Attention: Liability Management
E-mail: em_europe_lm@jpmorgan.com

VTB Capital plc
14 Cornhill
London EC3V 3ND
United Kingdom
For information by telephone: +44 20 3334 8029
Attention: Liability Management
Email: liability.management@vtbcapital.com

Questions or requests for assistance concerning the procedures of the Tender Offer or for additional copies of the Tender Offer Memorandum should be directed to Lucid Issuer Services Limited (Attention: Victor Parzyjagla) as the Information and Tender Agent in London Tel: +44 20 7704 0880; E-mail: mts@lucid-is.com.

Copies of the Tender Offer Memorandum and the Notice of Guaranteed Delivery are also available at the following web address:https://library.lucid-is.com/mts

For further information, please contact:
Dega Retail Holding Limited

19 Waterfront Drive P.O. Box 3540
Road Town
Tortola
British Virgin Islands VG1110
For information by telephone: +7 495 223 20 25
Attention: Investor Relations
Email: ir@mts.ru