Press release

MTS Amends EUR 300 Million Credit Facility

November 03, 2009

Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has successfully renegotiated the terms of the EUR 300 million credit facility from Gazprombank as part of the Company’s efforts to reduce the interest rates of its debt portfolio.

MTS initially entered the credit agreement with Gazprombank in late December 2008. Under the terms of the agreement, the Company was to pay an annual interest rate of 12%. As the result of negotiations, the interest rate has been decreased to 8%. The maturity of the facility has been extended by more than a year from June 2011 to September 2012.  MTS has already paid down EUR 50 million of the original facility.

A significant portion of the credit facility in the amount of EUR 150 million has been restructured into Russian rubles(1) with maturity in September 2012 and an annual interest rate of 13%.

The Company also opened a revolving credit facility in the amount of EUR 100 million with maturity in September 2012 and an annual interest rate of 8%.

The amendment to the terms of the agreement is part of the MTS’ ongoing effort to reduce its overall interest rate expense by taking advantage of improved credit market conditions.

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For further information, please contact in Moscow:

Joshua B. Tulgan

Director, Investor Relations

Mob: +7 985 220 4208

Department of Investor Relations

Mobile TeleSystems OJSC

Tel: +7 495 223 2025

E-mail: ir@mts.ru

Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/

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Mobile TeleSystems OJSC (“MTS”) is the largest mobile phone operator in Russia and the CIS. Together with its subsidiaries, the Company services over 96.86 million subscribers. The regions of Russia, as well as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its associates and subsidiaries are licensed to provide GSM services, have a total population of more than 230 million. Since June 2000, MTS’ Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS can be found on MTS’ website at www.mtsgsm.com.

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” and the negative of such terms or other similar expressions.  We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks..

(1) According to the Russian Central Bank exchange rate of 43.0678 RUB/EUR as of October 31, 2009.

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MOBILE TELESYSTEMS OJSC

By:

/s/ Mikhail Shamolin

Name:

Mikhail Shamolin

Title:

CEO

Date:   November 3, 2009