Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has signed agreements to receive three separate loans for the total amount of EUR 413 million from the European Bank for Reconstruction and Development (EBRD), the Nordic Investment Bank (NIB) and the European Investment Bank (EIB) to be used for the further development of 2G and 3G mobile networks in the Company’s markets of operation.

The EBRD loan in the amount of EUR 218 million amends a previously unused commitment, concluded in December 2008, and will provide funding for the development of the Company’s networks in Russia, Uzbekistan and Turkmenistan. The loan will have two tranches; the first tranche¹ of EUR 115 million has a 7-year maturity, while the second tranche  of EUR 103 million has a 3-year maturity.

The NIB loan in the amount of EUR 80 million will be used to finance the further expansion of the Company’s 2G and 3G mobile networks in Russia, Ukraine, Armenia and Turkmenistan. The loan is in two tranches of EUR 40 million each with maturities of 7- and 3-years.

The EIB loan in the amount of EUR 115 million will support the rollout of 3G/UMTS-based mobile broadband services in the Russian Federation in terms of the purchase and installation of equipment and software licenses for UMTS-based 3G access and core network. EIB funds will allow MTS to increase its rollout of 3G networks to additional cities in Russia in 2009. The loan will have a 7-year maturity.

Commented Mikhail Shamolin, President and CEO of MTS, “For the past nine months, MTS has been working closely with lending organizations to leverage its financial strength in an increasingly volatile lending environment. Cooperation with the EBRD, NIB and EIB enables MTS to carry through on its investment programs, while simultaneously allowing the Company to better manage its cash flows. This in turn allows MTS to better serve our customers, enhance our financial position and realize our strategic goals in our markets of operation.”

¹The second tranche of the previous unused EBRD commitment was for EUR 110 million at a 5-year maturity. The revised commitment only impacts the scope and terms of the second tranche.