Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or "the Company" – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that MGTS-Nedvizhimost CJSC, the wholly owned subsidiary of Moscow City Telephone Network OJSC (MGTS), a subsidiary of MTS, has completed the sale of its 51% stake in Rent-Nedvizhimost CJSC to Business- Nedvizhimost CJSC for a price of RUB 4.34 billion. MGTS-Nedvizhimost CJSC retains a 49% stake in Rent-Nedvizhimost CJSC.

The transaction is in line with MGTS`s stated goals to restructure non-core assets and reduce real estate maintenance costs. Key Rent-Nedvizhimost CJSC`s assets include buildings housing automatic telephone exchanges, which have largely become redundant due to the modernization of MGTS equipment. The transfer of these real estate sites under the control of Business-Nedvizhimost CJSC will permit the repurposing of the assets for broader commercial uses.

Business-Nedvizhimost CJSC is a subsidiary of Sistema JSFC (LSE: SSA), the parent company of MTS.

The independent appraisal was conducted by Cushman & Wakefield. The transaction was approved by the Federal Antimonopoly Service (FAS) and has received all necessary internal corporate approvals .

For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Corporate Finance & Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru