OREANDA-NEWS. February 16, 2011. Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that the Company’s Board of Directors has today affirmed the share buyback report related to the reorganization of MTS through a merger with OJSC “Comstar-UTS” (“Comstar”), CJSC “Dagtelecom” and OJSC “Eurotel” following receipt of approval at the MTS Extraordinary General Meeting of shareholders (the “EGM”) held on December 23, 2010. Those shareholders that voted against or did not vote were eligible in accordance with Russian law to file for a buyback of their shares within a 45-day period from the date of the EGM.

Submissions for a total of 8,000 MTS ordinary shares representing 0.0004% of the Company’s issued share capital were received. All 8,000 shares will be repurchased as the value of the submissions is below MTS’ 10% net asset value1, the limit set by Russian law in case of a buyback of shares. As was announced on June 25, 2010, the Company’s Board of Directors set the buyback price at RUB 245.19 per one MTS ordinary share.

The deadline for submission of applications to participate in the buyback for eligible MTS shareholders ended on February 7, 2011. Payment for the shares will be made no later than March 9, 2011.