Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has successfully renegotiated the terms on its Gazprombank credit facilities.

Following the amendment, the maturity was extended from the current 1.5 to 2.5 years to five years. The new debt repayment schedule now stipulates quarterly payments in six equal parts, starting from November 2013. The final payment is to be executed in February 2015, but the agreement allows for early repayment.

In addition, the interest rate on the facility in the amount of RUB 6.46 billion was reduced.

The new terms for financing are in effect as of April 28, 2010.

The reduction of interest expenses and the extension of debt maturities is part of the Company’s strategy at optimizing its debt profile. MTS aims to continue negotiating with the major lenders to further lower the Company’s interest exposure.