Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has acquired a 95% stake in Metro-Telecom CJSC (Metro-Telecom) from Invest-Svyaz CJSC, a wholly owned subsidiary of Sistema, the largest diversified public financial corporation in Russia and the CIS and majority owner of MTS.

MTS acquired the 95% stake in Metro-Telecom for RUB 339.35 million (or $11.01 million¹). The company has an optical fiber network in the Moscow Metro. The acquisition supports MTS’ 3i Strategy and will further strengthen the Company’s position in the Moscow market.

Metro-Telecom’s operating results will be consolidated in the Company’s financial statements beginning from August 27, 2010.