Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or "the Company" – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the repurchase of the series 04 ruble-denominated bond in the amount of approximately RUB 1.103 billion.

Gazprombank, the Lead Arranger of the bond, acted as the Repurchase Agent.

The RUB 15 billion series 04 ruble-denominated bond with maturity on May 13, 2014 and a two-year put option was issued on May 19, 2009. The coupon was to be paid annually at the rate of 16.75%. On May 11, 2011, the Company changed the coupon rate to 7.6%.

The bond is part of the "A1" quotation list on the Moscow Interbank Currency Exchange since April 2010.