Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or "the Company" – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces a change in the coupon rate of the series 03 ruble-denominated bond ("the bond") from an annual rate of 7.50% to 12.00%.

As the bond carries a one-year put option, bondholders are entitled to a repurchase of their respective securities by the Company. Delivery instructions can be submitted from December 10, 2014 till December 16, 2014. The repurchase is scheduled for December 17, 2014.

Gazprombank, the Lead Arranger of the Bond, will act as the Repurchase Agent.

The RUB 10 billion series 03 ruble-denominated bond with maturity on June 12, 2018 and a two-year put option was issued on June 24, 2008. The coupon was to be paid semi-annually at the rate of 8.70% for the 1st-4th coupons and at the rate of 8.00% for 5th-10th coupons. On June 05, 2013, the Company changed the coupon rate for the 11th coupon to 7.00% with a six-month put option. On December 09, 2013, the Company changed the coupon rate for the 12th and 13th coupons from 7.00% to 7.50% with a one- year put option.

The bond is part of the Level 1 quotation list on the Moscow Exchange.

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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