OREANDA-NEWS. OJSC MegaFon ("MegaFon" or the "Company") announces the exercise by its CEO Ivan Tavrin of his option to purchase an additional 1.25% interest in the Company. The shares, converted to GDRs, were acquired by a company owned by Mr. Tavrin at the IPO offer price, corresponding to USD 20 per share, for a total purchase price of USD 155 million, from MegaFon Investments (Cyprus) Limited, a wholly-owned subsidiary of the Company. As a result of the completion of the transaction, Mr. Tavrin’s beneficial interest in the Company reached 2.5%, while the interest of MegaFon Investments (Cyprus) Limited has been reduced to 7.57%.

This purchase is pursuant to a long-term incentive plan, duly approved by the Company’s Board of Directors on 30 November 2012, under which Mr. Tavrin is given the option to purchase up to 5% of the Company’s share capital.