Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications operator in Russia and the CIS, announces that the Tashkent Criminal Court has issued a ruling in favor of the Uzbek state to confiscate all assets of Uzdunrobita FE LLC, MTS’s wholly-owned subsidiary in Uzbekistan (“Uzdunrobita”), in connection with a criminal court judgment against four employees of Uzdunrobita.

Previously, Uzbek law enforcement bodies had arrested all of the Uzdunrobita’s assets, including cash held in local bank accounts, and evaluated the company’s assets at approximately $700 million.  Uzdunrobita was denied the right to defend its rights and legitimate interests and to engage as a legal party to the trial against its employees, which resulted in the confiscation of the company’s assets.

MTS believes that Uzbekistan authorities overlooked numerous violations of the Uzbek and international laws during the pre-trial period. These violations pertain to the formal presentation of evidence during the trial.  The overall expediency in the proceedings and refusal to recognize the Company as a party to the process testify to the fact that the process has been orchestrated with the objective to seize and expropriate Company’s assets and business in Uzbekistan.

MTS disputes the severe and unlawful sentencing of its four Uzdunrobita employees. The allegations brought against them had not been proven during the various hearings, and it remains unclear why Uzdunrobita, having been denied its petition to be recognized as a legal party to the trial, is being subjected to the confiscation of its assets for alleged transgressions, with which it has not been charged.

MTS reserves the right to use all legal options, primarily in the international arena, and initiate proceedings against officials involved in illegal actions against the Company and to claim damages incurred as a result of an unwarranted attack on its subsidiary in Uzbekistan.

For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Investor Relations
Acting Director, Corporate Finance

Department of Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru