Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has signed a credit agreement with the Bank of Moscow in the amount of RUB 22 billion.

The terms of the credit agreement stipulate a three-year maturity with a one-year extension option and an annual interest rate of 10.25%. The credit line can be drawn down until October 1, 2010. The facility carries no commitment fee or any other upfront fees payable at signing.

Acting Vice President and Chief Financial Officer, Alexey Kornya, commented: “The loan is a source of committed funding for MTS that may be used by the Company as a back-up funding solution should the put options on the ruble bonds be exercised as well as for potential refinancing of other debt.”