Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it will place a 15 billion ruble bond.

The bond will have a maturity in 2014 with the placement closing on May 19, 2009. Coupons are to be paid semiannually, while bond holders will have the right under a two-year put option to sell the bonds to MTS. Lead Arrangers of the bond are Gazprombank and VTB.

Commented acting Chief Financial Officer, Alexey Kornya: "This ruble-denominated placement will ensure that we are better positioned to withstand any continued volatility in the global credit markets and see to our business needs, which include funding our CAPEX plan, meeting future obligations and better rationalizing our debt structure."