Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has signed a facility agreement to refinance a portion of its $1.33 billion syndicated loan facility.

Having concluded negotiations with a consortium of banks, MTS signed the facility agreement to refinance the first tranche of its existing $1.33 billion syndicated loan facility in the amount of $630 million that was scheduled to mature in May 2009. The Company raised $295 million for facility A and €214.5 million for facility B to be followed by an additional tranche (amount to be further disclosed) in the coming weeks as part of the new facility. The facility will mature in 2012 and will have an interest rate of LIBOR+6.5%.

The Mandated Lead Arrangers are Absolut Bank, Bank of China (Eluosi), Bank of America, N.A., Bank of China (UK) Limited, Banque Société Générale Vostok (Moscow), Bayerische Landesbank, BNP Paribas, Credit Suisse International, Export Development Canada, HSBC Bank plc, ING Bank N.V. (London branch), ING Bank N.V., Dublin Branch, JPMorgan Chase Bank, N.A., Société Générale Corporate and Investment Banking (Paris), The Royal Bank of Scotland PLC, UniCredit Bank Austria AG, WestLB AG (London branch) and ZAO UniCredit Bank. Credit Suisse International and ING Bank N.V. (London Branch) acted as co-ordinating banks for the refinancing and ING Bank N.V. (London branch) is acting as the Facility Agent.

"Given the volatile international credit markets, our success in working with our core relationship banks and develop new banking partnerships to refinance the facility is a true testament to the strong fundamentals of our business. This facility provides MTS with additional financial flexibility to continue our investment programs and meet our future obligations," commented Mr. Aleksey Kaurov, Director of Corporate Finance at MTS.