Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has reached an agreement with Sberbank to lower interest rates on RUB 53 billion in loans.

The interest rate on the RUB 47 billion loan with maturity in September 2013 was reduced from an annual rate of 10.65% by 1.40 percentage points to 9.25%. Earlier, in March 2010, the interest rate was lowered from 11.75% to 10.65%.

The interest rate on the RUB 6 billion loan with maturity in August 2011¹ was reduced from an annual rate of 9.75% by 1.00 percentage points to 8.75%. In March 2010, the interest rate was reduced from 11.25% to 9.75%.

The changes to the terms of the financing came into effect on June 28, 2010.