Press release

MTS Invites the Government of Turkmenistan to Resolve the Dispute through Negotiations

January 21, 2011

Moscow, Russian Federation — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that on January 21, 2011 the Company sent a letter to the Government of Turkmenistan inviting it to resolve the dispute over the suspension of MTS’ operations in the country and to remove impediments to the Company’s business activities in Turkmenistan.

In the letter sent to the Government of Turkmenistan, MTS warns that as a result of actions undertaken by the Turkmen authorities, their agents and/or third parties acting on behalf of the Government of Turkmenistan and/or on its instructions, MTS has suffered and continues to suffer significant losses.

The aforementioned letter is a formal request to resolve the dispute through negotiations within the framework of the procedure for settlement of investment disputes provided for by the Bilateral Investment Treaty signed by the Russian Federation and Turkmenistan. Should the dispute not be resolved amicably, MTS reserves the right to commence proceedings against Turkmenistan in the International Centre for Settlement of Investment Disputes (“ICSID”), which is part of the World Bank Group.

As was previously announced, the Company had suspended its operations in Turkmenistan in accordance with the notice from the Ministry of Communications of Turkmenistan received by MTS on December 15, 2010. The notice informed the Company of a decision to suspend telecommunications licenses held by Barash Communications Technologies, Inc. (“BCTI”), MTS’ wholly-owned US subsidiary running operations in Turkmenistan, for a period of one month starting from December 21, 2010. Given that the actions of the Turkmen authorities prevent the Company from providing services to its customers, the operations will remain suspended until removal of certain impediments to run the Company’s business in Turkmenistan through negotiation with the Turkmen authorities.

The Company shall vigorously defend its legal rights and investment interests.

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For further information, please contact in Moscow:

Joshua B. Tulgan

Director, Investor Relations

Acting Director, Corporate Finance

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 leading telecommunications group in Russia, Eastern Europe and Central Asia, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services in one of the world’s fastest growing regions. Including its subsidiaries, the Group services over 106.3 million mobile subscribers in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, a region that boasts 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 the MTS Group can be found 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 undertake or 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, the severity and duration of current economic and financial

conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, including Comstar-UTS, 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, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.

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MOBILE TELESYSTEMS OJSC

By:

/s/ Mikhail Shamolin

Name:

Mikhail Shamolin

Title:

CEO

Date:   January 21, 2011