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 fifth ruble bond in the amount of 15 billion rubles with maturity in 2016 on the Moscow Interbank Currency Exchange (MICEX).

The bond issue was oversubscribed. Coupons will be paid annually at the rate of 14.25%. The bond carries a three-year put option. Lead Arrangers of the bond are Gazprombank and VTB Bank. The bond will be listed in the “V” quotation list on MICEX.

The proceeds from the bond placement will be used for general corporate needs, which include funding MTS’ CAPEX plan, meeting future obligations and better rationalizing the Company’s debt structure.