Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, today announced that its Board of Directors have affirmed share repurchase related to the merger of Mobile Communication Systems and BashCELL CJSC.

Under the terms of the repurchase, MTS will acquire 37 762 257 shares from investors who submitted requests to participate in the legally mandated buyback by the 11 August 2008 deadline. In total MTS will spend 11.1 billion roubles, or no more than 10% of its net asset value as of 31 March 2008 as stipulated by Russian Law and affirmed at the meeting of the MTS Board of Directors in May 2008. 

Because the total number of shareholder solicitations exceeded this value, MTS will acquire shares proportional to the number of requests received at a rate of 0.76667734. 

As mandated by Russian Law, MTS will carry out the transaction by 10 September 2008.