Moscow, Russian Federation – Mobile TeleSystems OJSC («MTS» – NYSE: MBT), the largest mobile phone operator in Russia and the CIS announces that it has received a decision of the tax inspection for the years 2005 and 2006 for the amount of RUR 1,130 million (approximately $49 million). The Company does not agree with the findings.

In the decision that was the result of a tax inspection of the Company’s financial statements for the years 2005 and 2006, MTS is asked to pay an additional RUR 1,130 million in taxes (including RUR 144 million in fines and penalties), which is approx. $49 million (including approx. $6 million in fines and penalties).

MTS does not agree with the tax claims indicated in the decision and intends to defend its position in court in accordance with the existing Russian laws and does not expect significant negative financial effects for the Company.