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 acquired a 10.82% stake in OZON Holdings (“OZON”), the leading Russian e-commerce company, through an additional share issuance for $75 mln. In parallel to this transaction, Sistema JSFC (“Sistema” - LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, and the parent company of MTS, acquired a 10.82% stake in OZON through an additional share issuance for $75 mln.

OZON Holdings owns five e-commerce companies in Russia: OZON.ru, the largest multi-category online shop in Russia with more than 750,000 unique visitors per day; Sapato.ru, one of the leading e-commerce store of shoes, accessories and apparel; OZON.travel, the leading Russian online travel agency; Î-Courier, OZON’s dedicated delivery service operating a network of companies and agents across Russia and Kazakhstan with over 2,200 delivery points; and OZON Solutions, a B2B consultancy, which helps businesses to succeed in the e-commerce universe.

Mr. Andrei Dubovskov, President and CEO of MTS, commented, “To realize our 3D strategy, MTS aims to develop more effective customer touch points and services. With this in mind, our investment in OZON complements our core mobile and retail businesses by aligning MTS with Russia’s leading e-commerce player. Upon completion of the transaction, we intend to establish a partnership with OZON to provide exclusive access to the company’s sales channels for MTS’s products and services. To further enhance our online presence, MTS will leverage OZON’s logistical infrastructure, its proprietary delivery services, IT capabilities and industry expertise to improve MTS’s own online store. Our partnership will also enable both companies to realize scale benefits in critical e-commerce categories, such as smartphones, tablets and consumer electronics devices. We see significant upside in leveraging our own resources and integrated marketing programs to bring greater value to our customers.”

Mrs. Maelle Gavet, CEO of OZON Holdings, said, “Currently only 24% of Internet users in Russia make purchases online, which indicates there’s a huge potential for growth in the sector. Our partnership with MTS will seamlessly merge MTS' vast experience with OZON's thriving e-commerce platform. OZON customers will also benefit from being able to pick up their orders in MTS’s retail stores”.

The Company has obtained all necessary corporate and the approval from the Federal Antimonopoly Service (FAS). As a result of the transaction, two representatives from MTS and Sistema are expected to join OZON’s board of directors.

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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