Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that the Company has acquired from a private investor a 100% stake in in LLC “Intercom” (“Intercom”), a leader in the cable TV and fixed broadband market in Volzhsk, the second largest city in the Republic of Mari El. The purchase price amounts to 90 million rubles.

Intercom has a 99% market share in the cable TV market and a 67% market share in the broadband Internet access market in Volzhsk. The operator’s network is built on FTTB (fiber-to-the-building) technology and covers almost all territory in the region.

"With this acquisition MTS enters the fixed-line services market in Mari El. The transaction is in line with the MTS’s strategy aimed at building the leading integrated operator in Russia. MTS already has fixed-line operations in 12 regions of the Volga Region. This transaction is a key step in strengthening our competitive position in this market," commented Andrei Revkov. Director for “MTS Volga Region.”

Intercom’s financial results will be consolidated in the Company's financial statements beginning from August 24, 2012.

Overall, MTS Group offers fixed-line services in over 150 cities throughout Russia.