Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has acquired a 100% stake in Eldorado Centr LLC and Eldorado Communications Store LLC from Tenteco Limited (Cyprus) and Kilcherex Holdings Limited (Cyprus).

MTS has acquired a 100% stake in the Eldorado mobile phone retail chain for $22.85 million of which $5 million will be paid after 12 months should the retail chain satisfy certain performance criteria.

Eldorado Centr LLC and Eldorado Communications Store LLC, constituting Eldorado mobile phone retail chain, operate 383 stores in 153 cities in Russia  offering handsets and other electronic goods, as well as tariffs and contracts of mobile operators. These companies are independent from Eldorado, the largest electronic appliances retail chain in Russia.

“MTS is continuing to optimize distribution channels in order to maintain high growth rates in its core markets. The development of our own monobrand retail network is the central element of our distribution strategy. Adding the Eldorado mobile phone retail chain to our existing retail network will allow us to serve our customers more effectively and carry through on our promise of a unique customer experience,” noted Mr. Mikhail Gerchuk, Chief Commercial Officer, MTS.

Eldorado mobile phone retail chain will be controlled by RTK CJSC, a company wholly owned by MTS and charged with managing MTS’ retail network. Financial results of acquired companies will be consolidated in the Company’s financial statements beginning from March 31, 2009.