OREANDA-NEWS. April 6, 2011. Mobile TeleSystems OJSC (“MTS” or “the Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that on April 1, 2011 the record of termination of COMSTAR – United TeleSystems JSC (“Comstar” – LSE: CMST) as a separate legal entity was entered into the Unified State Register thereby completing the merger of Comstar into MTS. In accordance with the terms of the merger, qualifying holders of Comstar ordinary shares received MTS ordinary shares at an exchange ratio of 0.825 MTS ordinary shares for each Comstar ordinary share. A total of 98,853,996 Comstar shares were converted into existing MTS treasury shares as well as newly issued MTS shares. As a result, MTS’ charter capital increased by 73,087,006 ordinary shares to a total of 2,066,413,144 ordinary shares. The state registration number of the newly issued MTS shares is 1-01-04715-A-002D.

It is expected that the Federal Financial Markets Service of Russia (“FFMS”) will register the share issuance report with respect to the newly issued MTS shares on or about April 22, 2011. Following the registration, MTS will file the necessary documents with the Moscow Interbank Currency Exchange (“MICEX”) to allow additional shares to be listed on the exchange. Subject to the satisfaction of all listing conditions, it is expected that trading of additional shares on MICEX will commence in May 2011. The additional share issue will trade on MICEX under another ticker symbol for a period of 3-months as stipulated by Russian law after which it will merge with the Company’s main issue (state registration 1-01-04715-A).