OREANDA-NEWS. June 1, 2012. Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that MTS Group, through its subsidiary Moscow City Telephone Network OJSC (“MGTS”), has acquired a 100% stake in Tascom CJSC (“Tascom”), a market leader in providing telecommunication services to corporate clients in Moscow and the Moscow region, from Bester Investments Limited, which is owned by the European Bank for Reconstruction and Development (EBRD), its related funds and certain other private investors.

The purchase price paid at the completion of the transaction amounted to USD 38.3 million. Additional payment of USD 6.9 million is deferred for 12 months and is contingent upon fulfillment of certain agreed requirements. MGTS also assumed net debt of Tascom in the amount of USD 9.7 million.

Tascom provides a wide array of telecommunication services to corporate clients, including virtual private networks (VPNs), local and long distance/international calling, broadband Internet, and WiFi access. The Company owns an extensive fiber-optic network (1,100 km in Moscow and in 50 towns of the Moscow region) and a wireless network in pre-WiMax standard.

Alexander Popovskiy, MTS Vice President and Chief Operating Officer, Chairman of MGTS Board, commented, “The acquisition of Tascom, one of the leading players in the Moscow B2B market, is in line with the MTS’ strategy of building an integrated operator. Given the rising demand for data services in Moscow, we see a significant potential for enhancing the Company’s position in Russia’s most lucrative market. We are confident that with better standing in the Moscow market, MTS will be able to and attract major clients with presence across Russia offering them nationwide VPNs and strengthen our leadership in the corporate market.”