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 commenced a secondary placement of its series 02 ruble bond on the Moscow Interbank Currency Exchange (“MICEX”). The books are to be closed on July 7, 2011. Under the terms of the placement, the Company may raise up to RUB 8.7 billion with the proceeds used for general corporate needs.

The Lead Arranger and Placement Agent of the secondary bond issue is Gazprombank.

The RUB 10 billion series 02 bond issue was initially placed on October 28, 2008. On April 29, 2010, the Company repurchased a portion of the bond issue following the exercise of the two-year put option by the bondholders.

The bond is listed in the “A1” quotation list on MICEX. The bond pays a semi-annual coupon and carries an annual rate of 7.75%. The bond’s maturity date is October 20, 2015.