Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has acquired a 100% stake in CJSC Multiregion (“Multiregion”), one of the leading groups of broadband and cable TV providers in the Russian regions, from Cavolo Trading Limited (Cyprus).

The purchase price amounts to $123.5 million. MTS will also assume debts totaling roughly $94.4 million.

Multiregion is a group of broadband and cable TV providers with presence in 37 cities of the Russian Federation. The current network coverage of the company is around 1.8 million households, of which 1.3 million are FTTB-based. Multiregion has approximately 700,000 cable TV subscribers and 260,000 broadband subscribers.

“The acquisition will significantly enhance our position in the rapidly growing broadband and cable TV markets in the Russian regions. As the largest integrated telecommunications provider in Russia and the CIS, MTS will be able to provide its customers a broad, innovative and bundled offering of mobile and fixed line telephony, high-speed broadband internet access and television services in over 110 cities in Russia. It fits perfectly into our ‘3i’ strategy, as it allows us to expand our integrated service portfolio and to differentiate our products from the competition,” commented Mikhail Shamolin, President and Chief Executive Officer of MTS.

Multiregion’s financial results will be consolidated in the Company’s financial statements beginning from July 16, 2010.