Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has filed an application to the Federal Anti-Monopoly Service (FAS) to receive approval for the acquisition of up to 100% of Comstar UTS.

If realized, the transaction would create an integrated telecommunications operator in Russia and the CIS and accelerate the development of integrated and broadband communications services throughout our regions of operation.

Because a potential transaction would involve related parties, MTS’ Board of Directors has established a Special Committee of its three Independent Directors to oversee the transaction process and decide whether to recommend the acquisition of Comstar UTS to the full Board of Directors.  Independent financial and legal advisors, hired through a tender process and reporting to the Committee, will provide fairness opinions, legal analyses and additional advisory services to the Committee members.

JSFC Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, owns nearly 50.9% of Comstar UTS and 53.1% of MTS.

No decision has yet been made with respect to the size or structure of any potential transaction.