OREANDA-NEWS. Mobile TeleSystems OJSC ("MTS" or the "Company" - NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that its majority-owned subsidiary, Moscow City Telephone Network OJSC ("MGTS"), divested its 49.95% stake in Intellect Telecom OJSC ("Intellect Telecom") to Sistema JFSC (LSE: SSA) ("Sistema"), the parent company of MTS, for a price of RUB 344 mln. MGTS also acquired from Sistema a 89.53% stake in NIS PJSC, the leading systems integrator for GLONASS satellite projects ("NIS"), for a price of RUB 44 mln.

The acquisition of NIS allows MTS Group to further develop its proprietary technological platform for machine-to-machine (M2M) solutions and strengthen its leadership in the quickly emerging Russian M2M market. MTS will leverage the expertise and capabilities of NIS to enhance its presence in the areas of telematics solutions for transport, insurance and security systems.

Intellect Telecom is a research and development innovation center in the field of telecommunications. The sale of its ownership stake supports MGTS's strategy of divesting minority stakes to provide greater transparency within MGTS's business.

Both transactions have been approved by the Federal Antimonopoly Service of Russia (FAS). MTS has received all the necessary corporate approvals, including approval by the MTS Board of Directors.