Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the signing of an agreement with Scartel LLC (Yota Networks) to launch an LTE MVNO on Scartel’s network in Kazan.

The network launch is planned for August 30, 2012. MTS will provide data transfer services using Scartel’s LTE FDD (frequency division duplexing) network in the 2500-2530/2620-2650 MHz range. Scartel’s network consists of 118 base stations, covers 80% of Kazan’s territory and enables speeds up 100 Mb/s.

“Demand for data services is constantly rising in our markets. MTS is focused on making state-of-the-art mobile Internet technologies available to its subscribers both by upgrading its own infrastructure and partnering with other operators. MVNO partnerships allow MTS to quickly launch LTE networks and optimize CAPEX on network roll-out. Kazan is the first city in Russia where MTS will begin offering 4G services under the MVNO model. Going forward, the experience gained in this region can be used nationwide,” commented Aleksander Popovskiy. MTS Vice President and Chief Operating Officer.

On September 01, 2012, MTS will launch its own LTE TDD (time division duplexing) network in Moscow and the Moscow region. Sales of 4G modems began in early August.