Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has signed an agreement with Sberbank to open two non-revolving lines of credit for a total amount of RUB 100 billion.

The two lines of credit are in the amount of RUB 60 billion and RUB 40 billion each. The RUB 60 billion line will be used to pay down the outstanding RUB 53 billion in loans to Sberbank. The RUB 40 billion line will be used as a cash cushion given the potential creditor puts arising from the merger with Comstar-UTS as well as for 3G investments in 2011. Both lines carry an annual interest rate of 8.95% with quarterly payments and a 7-year tenor. It is expected that the RUB 60 billion credit line will be opened immediately.

Alexey Kornya, Vice President and Chief Financial Officer of MTS, commented, “In line with MTS’ strategy of optimizing its debt profile, we are refinancing the existing debt with longer term and lower cost capital. The size and terms of this latest agreement are indicative of the strength of MTS' financial standing and the Company's ability to attract resources on favorable terms.”