Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has further lowered the interest rate on the Gazprombank credit facilities on July 10, 2010.

The interest rate on the facility in the amount of RUB 6.46 billion was reduced as of July 10, 2010. The final payment is to be executed in February 2015, but the agreement allows for early repayment.

The reduction of interest expenses on debt facilities is part of the Company’s strategy at optimizing its debt profile. MTS aims to continue negotiating with the major lenders to further lower the Company’s interest exposure.