Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or "the Company" – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that its subsidiary Moscow City Telephone Network OJSC (MGTS), through its wholly owned subsidiary MGTS-Real Estate CJSC, has concluded an agreement to sell the remaining 49% stake in Business- Nedvizhimost CJSC to Sistema JSFC (LSE: SSA), the largest publicly traded diversified holding company in Russia and the CIS and the parent company of MTS, for a price of RUB 3.1 billion. Upon completion of the transaction, Sistema’s stake in Business- Nedvizhimost CJSC increases to 100%.

Business-Nedvizhimost CJSC was spun off from MGTS-Nedvizhimost in September 2013. Business-Nedvizhimost CJSC owns and manages 76 real estate sites throughout Moscow with a total area of roughly 178,000 sq m. Sites are mainly used by MGTS for housing of technical equipment, including switches, and will be freed up by the end of 2015 as MGTS completes its investments in its Gigabit-capable Passive Optical Network (GPON).

Appraisal of the real estate portfolio was conducted by American Appraisal.

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