Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications operator in Russia and the CIS, announces that the State Agency for Communications and Information of Uzbekistan (“SACI”, the “Regulator”) filed a petition to the Tashkent Commercial Court to withdraw all operating licenses of Uzdunrobita FE LLC (“Uzdunrobita” or “MTS-Uzbekistan”), MTS’s wholly owned subsidiary in Uzbekistan.

MTS believes that allegations of illegal activities on the part of regional branches, operating without individual licenses, are unsubstantiated and contradict the official documents, including those issued earlier to Uzdunrobita by the SACI. Overall, the amount of claims against Uzdunrobita with regards to alleged failure to comply with the licensing requirements is approximately $210 million.

On August 08, 2012, Uzdunrobita filed an appeal to challenge the decision of the Tashkent Commercial Court, dating from July 30, 2012, to suspend Uzdunrobita’s license for a period of three months. Irrespective of the outcome of those hearings, the SACI today filed a new petition to the Tashkent Commercial Court to cancel all of the Company’s operating licenses. The date of the hearings is set for August 13, 2012.

Since the acquisition of Uzdunrobita in 2004, MTS has always duly complied with the requirements of the laws of Uzbekistan, which has been confirmed by numerous audits conducted by the SACI and other regulatory bodies of Uzbekistan.

Prior to 2002, the SACI held a stake in Uzdunrobita and had itself created the existing regional branch structure. In 2004 the SACI further authorized its use when it issued all of the operating licenses to Uzdunrobita. Licensing agreements with Uzdunrobita signed in 2004 on behalf of the SACI by Mr. Abdullah Aripov, General Director of the SACI at that time, who currently serves as Deputy Prime Minister of Uzbekistan, directly state that the licenses, during their tenor, apply to all branches of Uzdunrobita irrespective of when these branches were established. To emphasize this fact, a list of branches and affiliates in question was attached to the license agreements as addenda.

ĚŇS announces that prior to the completion of any investigation against Uzdunrobita and receipt of any court decisions, the Office of the General Prosecutor of Uzbekistan has ordered the arrest of any disbursements from Uzdunrobita’s accounts in the National Bank for foreign economic activity of the Republic of Uzbekistan. Arrest of the bank accounts prevents MTS from reimbursing its subscribers and settling invoices of third parties.

In order to clarify the situation and start constructive discussions with the authorities, MTS has sent a number of official letters to the leadership of Uzbekistan, including the President of the Republic of Uzbekistan I.A. Karimov. To date, MTS has not received any responses.

MTS believes that sustained violations of both the laws of Uzbekistan and international laws by the Office of the Prosecutor General and other government agencies of the Republic of Uzbekistan compromise the legitimate rights of MTS as a foreign investor. The denial of the Company’s constitutional rights to its legal defense, as well as the unusually expedient legal proceedings surrounding Uzdunrobita, is evidence of a coordinated attack on the Company by various Uzbek authorities. The unwarranted and unsubstantiated charges brought against the Company and excessive amounts of claims indicate that the authorities are uninterested in settlement of the conflict.

In case Uzdunrobita’s license is cancelled, MTS reserves the right to initiate proceedings both in Uzbekistan and at the international arena, including proceedings against certain officials involved in illegal actions against the Company, to claim damages incurred by MTS Group.