OREANDA-NEWS. April 4, 2011. Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that MTS Group has acquired 100% in Inteleca Group of companies (“Inteleca”), an alternative operator in the cities of Barnaul and Biysk in Altai Krai of the Siberian Federal District, from a group of private investors. The acquisition allows MTS to strengthen its position in the broadband internet and cable TV markets in the region.

The purchase price was RUB 545.8 million (or approximately USD 19.2 million1). In addition, Inteleca has net debt of RUB 58.5 million (or approximately USD 2.1 million).

The company is one of the leading alternative operators in the region providing broadband internet and cable TV services to around 41,500 and 52,100 subscribers respectively. The services are provided using Fiber-to-the-building (“FTTB”) and Hybrid fiber-coaxial (“HFC”) network technologies. Inteleca’s network coverage in Barnaul is around 163,000 households passed and around 25,000 in Biysk. The company has more than 500 kilometers of fiber optic cable.

Inteleca’s financial results will be consolidated in MTS’ financial statements beginning from March 31, 2011.