OREANDA-NEWS. November 18, 2010. Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that Public Joint Stock Company Moscow City Telephone Network (“MGTS”), a majority-owned subsidiary of COMSTAR–United TeleSystems OJSC (LSE: CMST), acquired a 39.01% stake in Intellect Telecom OJSC (“Intellect Telecom”), a research and development subsidiary of JSFC Sistema (“Sistema” – LSE: SSA), for RUB 378.5 million.

The acquisition was structured through a secondary offering of shares launched by Intellect Telecom to be completed upon registration of the report of additional shares issuance with the Federal Financial Markets Service of the Russian Federation within a period allowed by shares issuance terms and conditions and applicable law.

It is expected that MGTS will utilize the extensive knowledge base and industry expertise of Intellect Telecom to provide innovative technological solutions in the development of the company’s network.