Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has successfully placed its first exchange-traded ruble bond on the Moscow Interbank Currency Exchange (MICEX). The bond is worth RUB 10 billion and has a maturity of ten years.

The bond issue was oversubscribed. Coupons are to be paid semiannually at the rate of 8.25%. Bond holders will have the right under a five-year put option to sell the bonds to MTS. Lead Arrangers of the bond were VTB Capital, Sberbank CIB and UniCredit Bank. Sberbank CIB has acted as Placement Agent for the bond.

The bond was placed on MICEX on April 03, 2013, though a book-building process. The books were closed on March 29, 2013. The bond will be listed in the «A1» quotation list on MICEX.

The proceeds from the bond placement will be used for general corporate needs.