OREANDA-NEWS. May 04, 2011. Mobile TeleSystems OJSC (“MTS” or “the Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the decisions reached at the Company’s Board of Directors (“BoD” or “the Board”) meeting.

At the meeting, MTS’ Board of Directors set the date for the Company’s annual general meeting of shareholders (“the AGM”) for Monday, June 27, 2011. The Board also recommended that the AGM approve annual dividends of RUB 14.541 per ordinary MTS share (approximately USD 1.04 per ADR2 ) for the 2010 fiscal year, amounting to a total of RUB 30.05 billion (approximately USD 1.08 billion or 78% of US GAAP net income). The record date for the Company’s share- and ADR-holders entitled to participate in the AGM and to receive dividends for the year 2010 has been set for Tuesday, May 10, 2011. The dividend will be paid out in the period of two months following the approval of the AGM in accordance with recent changes in Russian law governing the dividend payment process.

Issues entered into the AGM agenda by the BoD include among others:

Approval of MTS OJSC Annual Report; MTS OJSC Annual Financial Statements, including MTS OJSC Profit & Loss Statement; distribution of profits and losses of MTS OJSC based on FY 2010 results (including payment of dividends);

Election of members of MTS OJSC Board of Directors;

Election of members of MTS OJSC Auditing Commission;

Approval of MTS OJSC auditor;

Approval of MTS OJSC Charter as amended and restated;

Participation of MTS OJSC in a non-profit union of operators on the development of the Long Term Evolution (“LTE”) technology in Russia.

Previously, the Company’s BoD nominated a total of nine members for election to the Board. The candidate list includes:

Mr. Anton Abugov, First Vice President, Head of Strategy and Development functional division at Sistema;

Mr. Alexey Buyanov, Senior Vice President, Head of Financial functional division at Sistema;

Mr. Andrei Dubovskov, President and Chief Executive Officer of MTS;

Mr. Charles Dunstone, independent candidate;

Mr. Felix Evtushenkov, First Vice President, Head of Core Assets Business Unit at Sistema;

Mr. Stanley Miller, independent candidate;

Mr. Paul Ostling, independent candidate;

Mr. Mikhail Shamolin, President and Chief Executive Officer of Sistema;

Mr. Ron Sommer, Board Director at Sistema.

The new directors will be elected after the decision of the Company’s AGM on June 27, 2011.

Mr. Felix Evtushenkov was born in 1978. He is a graduate of the A.S. Griboedov Institute of International Law and Economics with a degree in jurisprudence. From 1999 to 2000, he was Executive Director of the industrial department of Sistema. From 2000 to 2003, Mr. Evtushenkov held a number of positions at Sistema-Hals. He headed Sistema-Hals from 2003 to 2008. In June 2008, he became Chairman of the Board of Directors of Sistema-Hals. In July 2008 he became Vice President of Sistema and Head of Consumer Assets Business Unit. In April 2011, Mr. Evtushenkov was appointed First Vice President of Sistema, Head of Core Assets Business Unit.