OREANDA-NEWS. This announcement is not an offer for sale of any securities in the United States or to U.S. persons. Any securities described in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and there is no intention to conduct a public offering of such securities in the United States or to U.S. persons.

This announcement does not constitute or form part of any prospectus, advertisement, offer, or solicitation or invitation to subscribe for or purchase, with respect to any securities in the United Kingdom, the United States, the Russian Federation or elsewhere, nor shall it (or any part of it) form the basis of any investment decision, contract or commitment by any person for any such securities, and is provided for information only.

The distribution of this announcement may be restricted by law in certain jurisdictions, and persons into whose possession this announcement or other information referred to herein come should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction.

Documents in respect of the securities described in this announcement have been duly registered by the Russian Federal Service for the Financial Markets and publicly disclosed in the Russian Federation in accordance with applicable laws and regulations.

Open Joint Stock Company “MegaFon” (“MegaFon”, or the “Company”) (LSE: MFON), a leading Russian universal telecommunications operator, announces that its subsidiary MegaFon Finance LLC has today opened its books for subscriptions for its Series 06 and Series 07 Rouble denominated bonds (together, the “Rouble Bonds”). Both series of the Rouble Bonds were registered by the Russian Federal Service for Financial Markets on 29 March 2012 under the numbers 4–06–36027-R and 4–07–36027-R, respectively.

The total principal amount of each series of the Rouble Bonds being offered is up to RUB 10 bn. Each series of Rouble Bonds will have a term of 3640 days, subject to a put option on the part of the holder 5 years following placement. The Rouble Bonds are guaranteed by the Company . The coupon range is anticipated to be 8.00% to 8.25% per annum, subject to final determination via the bookbuilding exercise. Proceeds will be used for general corporate purposes, including refinancing of the Company’s current debt.

The books are expected to close at 17.00 Moscow time on or about 6th March 2013, and the placement is expected to occur on or about 13th March 2013.

The Rouble Bonds are expected to be admitted to trading on MICEX in the unlisted securities section.

Raiffeisenbank, Sberbank CIB, VTB Capital are acting as lead managers of the Rouble Bonds issue. Sberbank CIB is acting as the placement agent.