Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT or ‘the Company’), the leading telecommunications operator in Russia and the CIS, announces that it will incur a charge to operating income for the fourth quarter 2014 due to losses stemming from the insolvency of JSC Delta Bank.

On March 2, 2015, the National Bank of Ukraine (NBU) adopted a resolution declaring JSC Delta Bank to be insolvent. MTS Ukraine held UAH 1.4 bln at JSC Delta Bank in cash and deposits, both currently and as of December 31, 2014. MTS has determined that this event provides additional evidence about conditions that existed at the end of 2014 and will recognize an impairment loss of approximately RUB 5.2 bln in the fourth quarter.

JSC Delta Bank is one of several banks, which MTS Ukraine has used for deposits. As of December 31, 2014, the remaining amount of cash and deposits held by MTS Ukraine in other banks totaled RUB 16.1 bln.

MTS reports its Q4 2014 financial and operating results on March 17, 2015.

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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