Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications operator in Russia and the CIS, announces that on July 30, 2012, the Tashkent Economic Court granted a petition by the State Agency for Communications and Information of Uzbekistan (“SACI”, the “Regulator”) to extend for a period of three months the suspension of the operating of license of Uzdunrobita FE LLC (“Uzdunrobita”, “MTS-Uzbekistan”), MTS’s wholly owned subsidiary in Uzbekistan, notwithstanding the fact that MTS-Uzbekistan has fulfilled all of the requirements set forth in the order of the SACI from July 17, 2012, to suspend the license of Uzdunrobita. In the Company’s opinion, the court failed to extend to the Company the opportunity to realize its right to protection under Uzbek law.

On July 27, 2012, SACI filed a petition to the Tashkent Economic Court to extend the suspension of the MTS-Uzbekistan initially suspended by the Regulator on July 17, 2012, for ten (10) days for a period of three months. The Regulator requested suspension of the license for a longer period of time despite the fact that the Company has timely reported that it has duly complied with all of the Regulator’s requirements.

On the same day, the court accepted the petition and set the date of the hearings for July 30, 2012. The court’s definition, as well as the statement of the claim, were delivered by the Regulator to the office of MTS-Uzbekistan on Saturday, July 28, 2012 earlier than anticipated at a time when MTS’s offices were closed. Therefore, MTS-Uzbekistan had a few hours only before the hearings to prepare for the hearing. The Company’s motion to postpone the hearings in order to guarantee the right to adequate protection and prepare legal position was rejected by the court without explanation.

In the Company’s opinion, the rights of MTS as a foreign investor have been gravely breached. The suspension of the license, the on-going audits of MTS-Uzbekistan’s financial and operating activities, the seizure of assets, including network equipment, and the arrest of MTS-Uzbekistan’s employees are violations under Uzbek and international law.

In the Company’s opinion, the actions of the Regulator aimed at the suspension of the MTS-Uzbekistan license for a new period of three months are illegal and unwarranted. Considering the long history of MTS-Uzbekistan’s operations and absence of any significant complaints from the Regulator, MTS believes that ulterior motives are behind the Regulator’s actions.

In order to clarify the situation and start constructive discussions with the authorities MTS has sent a number of official letters to the leadership of Uzbekistan, all of which remain unanswered. On July 30, 2012, MTS sent an official letter to the President of the Republic of Uzbekistan I.A. Karimov with an appeal to clarify the situation and resolve the issues for MTS-Uzbekistan.