Moscow, Russian Federation — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that on March 05, 2012, the Moscow Arbitrazh Court terminated bankruptcy proceedings against MTS initiated by one of its former dealers, Lotsman Management Group LLC (“Lotsman”), in connection with a commercial dispute in the amount of 17 million rubles relating to dealer commissions allegedly owed to Lotsman by MTS. The proceedings were terminated when a bank used by MTS was served with an enforcement order relating to the aforementioned amount.

On January 31, 2012, MTS filed an appeal in the High Arbitrazh Court of Russia to challenge the decision by a court of lower instance ordering payment by MTS of the aforementioned amount. The proceedings are ongoing.