OREANDA-NEWS. April 27, 2011. Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that the MTS Group acquired 100% in each of the five companies operating under the Infocentr brand (“Infocentr”) in Kurgan, the administrative center of the Kurgan region of the Urals Federal District, from a group of private investors. Following the acquisition, MTS will now be able to provide broadband internet and cable television services in all regions of the Urals Federal District.

The purchase price was RUB 435.0 million (or approximately USD 15.6 million1).

Infocentr is the leading alternative operator in Kurgan with over 34,000 broadband internet and cable television subscribers. Its fiber optic network covers more than 90% of the city’s households. In 2010 the operator began offering cable television services. Some of the largest corporations and a number of government institutions are among Infocentr’s corporate clients.

“Today, the MTS Group provides fixed-line services in over 120 cities in Russia. The acquisition of Infocentr allows MTS not only to enter a promising new fixed-line market but also to strengthen its overall presence in the Urals region. We already provide broadband internet and cable television services in the Sverdlovsk region, Perm Krai, Chelyabinsk, Magnitogorsk and Miass, as well as occupy the leading positions in the cable television markets of Yekaterinburg, Tyumen, Khanty-Mansi Autonomous Okrug and Yamalo-Nenets Autonomous Okrug. The number of broadband subscribers of the MTS Group in the Urals has increased by more than 40% over the course of one year. The acquisition is in line with MTS’ strategy aimed at creating a federal integrated telecommunications operator,” commented Mr. Aleksander Popovskiy, Head of MTS Russia.

Infocentr’s financial results will be consolidated in MTS’ financial statements beginning from April 22, 2011.