Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecom operator in Russia and CIS, and Altimo Holdings and Investments Limited (a BVI company) and Altimo LLC (Russian company) (collectively “Altimo”), a telecom arm of Alfa Group, announced that an agreement has been reached between Altimo, MTS and Nomihold Securities Inc. (‘‘Nomihold’’) and other associated parties to settle all disputes that have arisen from investment in Bitel LLC, formerly the leading mobile telephony operator in the Kyrgyz Republic.

The agreement covers matters involving a number of parties and legal proceedings, including those in the Isle of Man, London, Luxembourg and the Seychelles. Pursuant to the agreement all proceedings between the parties, and their associated parties, have been discontinued and waived, and MTS shall receive a total payment up to $150 million, including an amount of $125 million which has been received by MTS as of the date hereof. All parties will make the necessary submissions to the respective courts and tribunals to document the settlement, which, among other actions, would fully discharge any and all outstanding obligations under the award rendered by the London Court of International Arbitration (LCIA) against MTS Finance SA ("MTSF"), a subsidiary of MTS, in January 2011, as well as settle the tripartite arbitration between MTS, MTSF and Nomihold and a tort action filed by Nomihold against MTS in the English Courts.

Altimo and MTS have acknowledged the importance of finding a commercial solution that will allow them to focus fully on their goals of developing their respective telecommunications markets throughout the world.

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Corporate Finance & Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru

Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/