Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has successfully completed a secondary placement of its series 02 ruble bond on the Moscow Interbank Currency Exchange (“MICEX”). As the result of the placement, the Company raised approximately RUB 6.3 billion. The bond issue was priced at 100.35% of the face value and was oversubscribed by more than 100%. The proceeds will be used for general corporate needs.

The books were closed on July 7, 2011. The Lead Arranger and Placement Agent of the secondary bond issue was Gazprombank. The settlements will be made on MICEX on July 11, 2011.

The RUB 10 billion series 02 bond issue was initially placed on October 28, 2008. On April 29, 2010, the Company repurchased a portion of the bond issue following the exercise of the two-year put option by the bondholders.

The bond is listed in the “A1” quotation list on MICEX. The bond pays a semi-annual coupon and carries an annual rate of 7.75%. The bond’s maturity date is October 20, 2015.