Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has entered into a credit facility in the amount of up to $165 million backed by Export Development Canada (EDC) to be used for the development of the Company’s mobile networks.

The facility will have a maturity in December 2012 and an interest rate of 6-month LIBOR+4.5%. The facility will be used to finance advance payments to MTS vendors in the course of twelve months from the date of the signing.