OREANDA-NEWS. February 04, 2011. Mobile TeleSystems OJSC (“MTS”– NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that effective immediately, it is terminating the Tender Offer and related solicitation of Consents (together, the “Offer”) with respect to the USD 400 million 8.00% notes due January 28, 2012 (the “Notes”) issued by Mobile TeleSystems Finance S.A. The Offer was made on the terms and subject to the conditions set out in the Offer to Purchase and Consent Solicitation Statement dated January 24, 2011 (the “Offer to Purchase”). As a result, MTS will not accept any Notes for purchase pursuant to the Offer.

Any Notes in respect of which delivery instructions have been submitted prior to this announcement will be unblocked in the relevant clearing system.

As previously announced on January 28, 2011, MTS was notified by Mobile TeleSystems Finance S.A. (“MTS Finance”), a wholly owned subsidiary of MTS, that MTS Finance was served with a freezing order issued by the English High Court of Justice on January 26, 2011 (the “Order”). Although MTS does not believe that the Order applies to or should prevent the Offer, the Offer is being terminated due to concerns related to its timely administration in view of the Order. MTS continues to consider further actions with respect to the Notes.