Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has entered into a credit facility in the amount of up to $212.5 million backed by China Export and Credit Insurance Corporation (SINOSURE) to be used for the development of the Company’s mobile networks through purchases of equipment from Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world.

The facility will have an interest rate of 6-month EURIBOR+1.95% with maturity in 2016. The banks structuring and arranging the transaction are Bank of China Limited as the Facility Agent and BNP Paribas as the Documentation Bank, Passport Bank and Account Bank.

The amounts to be drawn by the Company will be linked to the equipment purchases over the course of two years from the date of the signing.