MegaFon Opens Russia's Largest Data Center

Russian Major Mobile Provider MegaFon Opens Country's Largest Data Center in Samara

SAMARA, Russia, October 11, 2010 - The country's second-ranked national mobile service provider,
MegaFon has put into operation a world-class state-of-the-art Tier 3 data
center. The largest of its kind in Russia, the telecommunications facility
was officially opened on Friday, 8 October, 2010 in the city of Samara. The
data center is set to become the flagship of the industry nationwide, and the
backbone of the future national data center network.

The opening of the 74,400 square feet Samara Data Center
marked the completion of a $30 million project launched by MegaFon two years
ago.

"This is the first time a brand new, state-of-the-art data
storage and transmission facility of this size has been built in Russia for
commercial use," said Valeriy Ermakov, MegaFon's Chief Operations Officer.

"Data centers are the keystone of our infrastructure which
enables us to provide our domestic and global clients and partners with
cutting-edge information technology services.

"In the coming years we will be actively developing our data
center network powered by our own nationwide fiber-optic backbone. This
ambitious project will foster economic growth in Russia's regions and thus
significantly contribute to the country's modernization."

The new data center in Samara boasts the highest standards of
reliability and the strongest security features in Russia. The center
utilizes multiple diverse fiber-optic connections to ensure reliable
lightning-fast connectivity and the operational sustainability of its own
network and its clients' infrastructure.

Uptime Institute, a Santa Fe, New Mexico (U.S.)-based
international professional organization, has made a provisional assessment
that the Samara center is designed and built in accordance with the
requirements of Tier 3, one of the most stringent standards of an
infrastructure's capabilities. An official certificate for the site will be
issued at the beginning of 2011.

The center's facilities are now available to a wide range of
domestic and global customers. Amongst the services it offers are housing of
IT equipment and Internet connection, collocation and managed hosting.

The opening ceremony of the data center turned into one of the
most remarkable cultural events ever held in Samara. MegaFon invited the
Dijon (France)-based studio Easyweb, the world's leader in monumental video
projection and 3D video mapping, to celebrate the completion of this
large-scale innovative project. The studio utilizes state-of-the-art 3D
technology to create spectacular 3D video shows on the walls of buildings and
architectural constructions such as in the one with a giant floating UFO
featured in the rock concert given by Muse at Wembley Stadium. Easyweb
designers developed a unique video projection exclusively for MegaFon - the
first of its kind to be seen in Russia - which was projected onto the walls
of the data center's building.

    Key project facts:

    - 900 million Rubles ($30 million) investment

    - The center's infrastructure comprises the data centre
      itself, its own on-site power substation, a diesel generator, a
      dedicated boiler station, secure perimeter fencing and a guardhouse

    - The center covers 6,912 square meters (74,400 square feet) features
      six server halls of 400 square meters (4,300 square feet), main and
      redundant power supplies and a control center

    - Up to 200 GB/s bandwidth capacity in energy-saving mode

    - 8 MW power system

    - The center was designed and built to meet EIA/TIA-492 standard
      specifications ("Telecommunications Cabling Systems Standards for
      Data Center Infrastructure"). The project fully complies with the
      standard's requirements: it is a stand-alone building located in a
      flood-safe area remote from residential properties. The site utilizes
      redundant power supplies guaranteeing 100% availability (two independent
      power inputs), has high bearing strenght - up to 5,000 kilos per square
      meter, a safe modern fire extinguishing system and is protected 24
      hours a day by security guards.

    - With its own fibre-optic backbone in the Volga region and nationwide,
      MegaFon can guarantee the unsurpassed reliability of its data
      transmission and additional redundant data communications channels.
      The center utilizes multiple diverse fiber-optic connections to ensure
      uninterrupted performance in case of a cutoff failure.

    - Uptime Institute's provisional assessment indicates that the Samara
      center is designed and built in accordance with the reliability
      requirements of Tier 3. An official certificate for the site will be
      issued at the beginning of 2011.

Notes to Editors:

About MegaFon

JSC "MegaFon" is a leading national universal service provider working in
all segments of the Russian telecommunications market and the only one that
operates its own mobile network and provides a wide range of voice and data
telecommunications services throughout the whole country.

With 52 million subscribers the MegaFon mobile network is one of the
three major mobile networks in Russia and one of the world's 30 leading
networks by number of subscribers and revenue.

MegaFon was the first in Russia to launch 3G services using UMTS and is
the market leader in mobile Internet, the industry's fastest growing segment.
By acquiring the Synterra group in June 2010, a company with a large
terrestrial and satellite telecommunications infrastructure, MegaFon entered
the market of fixed-line communications for large public service and
corporate clients and improved its leadership capabilities in the segments of
long-distance communications, fixed-line and mobile broadband Internet and
convergent services. MegaFon's infrastructure covers all Russian regions and
supports GSM 900/1800, 3G, VSAT, IP/MPLS, long-distance lines and data centre
and call center networks connected to all other telecommunication service
providers.

MegaFon became a General Partner and the official mobile service provider
to the XXII Winter Olympic Games and XI Paralympic Winter Games in 2014 in
Sochi.

As of 07 September, 2010, MegaFon's principal shareholders are "AF
Telecom Holding", TeliaSonera's subsidiaries and Altimo, the
telecommunication branch of Russian Alfa Group.

www.megafon.ru

For further information please contact: Tatiana Ivanova, Press Officer JSC MegaFon, Telephone: +7-495-980-1970; +7-926-442-5246, pr at megafon.ru