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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 LLC MegaFon Finance (the “Issuer”) has closed subscription for its Series 06 and Series 07 Rouble denominated bonds (together, the “Rouble Bonds” or the “Bonds”).

Each series of Rouble Bonds will have a term of 3640 days. The coupon rate has been set at 8.00% p.a. for both series of Rouble Bonds for the period of 5 years after placement date, after which the coupon rate will be subject to revision and the Bonds will be subject to a put option.

The total principal amount of the Ruble Bonds is RUB 20 bn with each series amounting to RUB 10 bn. The Bonds are guaranteed by the Company.

The transaction attracted a substantial interest in the investor community, which allowed the Issuer to set the coupon rate at the lower end of the range of the initial guidance of 8.00 — 8.25% p.a.

Allocation of the Bonds to investors will occur on the Moscow Exchange on March 13, 2013.

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

Gevork Vermishyan, Chief Financial Officer of MegaFon commented:

“We believe the high level of interest from investors reflects both our strong financial position evidenced by our recently published 2012 year end results and their confidence in the sustainability of our business. The company will benefit from reduced interest expense and, through applying the proceeds of the new bonds solely to refinancing, we will continue to fulfill our long-term commitment to diversifying and enhancing our debt profile.”