Decisions of the MTS Board of Directors

MOSCOW, April 27, 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 held on April 27, 2011.

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 14.54[1] per ordinary MTS share (approximately $1.04 per ADR[2]) for the
2010 fiscal year, amounting to a total of RUB 30.05 billion (approximately
$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.

Biographies:

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.

Learn more about MTS. Visit the official blog of the Investor Relations
Department at www.mtsgsm.com/blog/

Mobile TeleSystems OJSC ("MTS") is the leading
telecommunications group in Russia, Eastern Europe and Central Asia, offering
mobile and fixed voice, broadband, pay TV as well as content and
entertainment services in one of the world's fastest growing regions.
Including its subsidiaries, the Group services over 108.5 million mobile
subscribers in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and
Belarus, a region that boasts a total population of more than 230 million.
Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock
Exchange (ticker symbol MBT). Additional information about the MTS Group can
be found at www.mtsgsm.com.

Some of the information in this press release may contain
projections or other forward-looking statements regarding future events or
the future financial performance of MTS, as defined in the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of 1995. You
can identify forward looking statements by terms such as "expect," "believe,"
"anticipate," "estimate," "intend," "will," "could," "may" or "might," and
the negative of such terms or other similar expressions. We wish to caution
you that these statements are only predictions and that actual events or
results may differ materially. We do not undertake or intend to update these
statements to reflect events and circumstances occurring after the date
hereof or to reflect the occurrence of unanticipated events. We refer you to
the documents MTS files from time to time with the U.S. Securities and
Exchange Commission, specifically the Company's most recent Form 20-F. These
documents contain and identify important factors, including those contained
in the section captioned "Risk Factors" that could cause the actual results
to differ materially from those contained in our projections or
forward-looking statements, including, among others, the severity and
duration of current economic and financial conditions, including volatility
in interest and exchange rates, commodity and equity prices and the value of
financial assets; the impact of Russian, U.S. and other foreign government
programs to restore liquidity and stimulate national and global economies,
our ability to maintain our current credit rating and the impact on our
funding costs and competitive position if we do not do so, strategic actions,
including acquisitions and dispositions and our success in integrating
acquired businesses, including Comstar-UTS, potential fluctuations in
quarterly results, our competitive environment, dependence on new service
development and tariff structures, rapid technological and market change,
acquisition strategy, risks associated with telecommunications
infrastructure, governmental regulation of the telecommunications industries
and other risks associated with operating in Russia and the CIS, volatility
of stock price, financial risk management and future growth subject to risks.

[1] The dividend yield per share is 5.7% based on the closing
price of the MTS ordinary share on the Moscow Interbank Currency Exchange as
of April 26, 2011.

[2] According to the Russian Central Bank exchange rate of
27.8964 RUB/USD as of April 27, 2011. The dividend amount is set in Russian
rubles by the Board of Directors; U.S. dollar amounts provided for reference
using the foreign exchange rate as of April 27, 2011.

For further information, please contact in Moscow: Joshua B. Tulgan, Director, Investor Relations, Acting Director, Corporate Finance, Department of Investor Relations, Mobile TeleSystems OJSC, Tel: +7-495-223-2025, E-mail: ir at mts.ru