Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces the decision of its Board of Directors regarding the rouble-denominated bond placements scheduled for October 23 and 28, 2008.

As was announced previously, MTS will be issuing two rouble-denominated bonds worth 10 billion roubles each with maturities in 2013 and 2015 on October 23 and 28, 2008, respectively. The coupons will be paid semiannually. The Board approves the right of bondholders to have their securities repurchased by the Company after a period of eighteen months from the issuance date as a condition of the placement.

Lead Arrangers of the bond are Gazprombank, Raiffeisenbank, Sberbank and Troika Dialog.