Mobile TeleSystems Announces Financial Results for the Second Quarter Ended June 30, 2010

MOSCOW, August 26, 2010 - Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the leading
telecommunications provider in Russia and the CIS, today announces its
unaudited US GAAP financial results for the three months ended June 30, 2010.

    Key Financial Highlights of Q2 2010[1]

    - Consolidated revenues up 16.6% y-o-y to $2,772 million

    - Consolidated OIBDA[2] up 11.7% y-o-y to $1,235 million with
      a 44.5% OIBDA margin

    - Consolidated net income of $354 million

    - Free cash-flow[3] positive with $1.0 billion for the six
      months ended June 30, 2010

    Key Corporate and Industry Highlights

    - Approval of the merger of MTS and Comstar-UTS by the
      respective Boards of Directors and launch of the Voluntary Tender Offer
      to acquire up to 9% of Comstar-UTS' ordinary shares

    - Issuance of USD-denominated Loan Participation Notes in the
      amount of $750 million

    - Securing of financing from the Bank of Moscow in the amount
      of RUB 22 billion in April and further reduction of its annual interest
      rate from 10.25% to 8.99% in June

    - American Depositary Receipt (ADR) ratio change from 1 ADR
      per 5 common shares to 1 ADR per 2 common shares effective May 3, 2010

    - Repurchase of the series 01 ruble-denominated bond in the
      amount of RUB 7.1 billion, the series 02 ruble-denominated bond in the
      amount of RUB 6.3 billion and the series 03 ruble-denominated bond in
      the amount of RUB 179.5 million

    - Approval of agreements signed in May by Comstar-UTS, MGTS
      Finance S.A., a company controlled by Comstar-UTS, and OAO Rostelecom
      involving the sale of the 25%+1[4] share of OAO Svyazinvest to OAO
      Rostelecom for RUB 26 billion

    - Acquisition of a 100% stake in CJSC Multiregion
      ("Multiregion"), one of the leading groups of broadband and cable TV
      providers in the Russian regions

    - Securing of vendor financing in the amount of EUR 300
      million backed by Finnvera

    - Approval of recommended dividend for FY 2009 of RUB 30.70
      billion ($999.3 million) or RUB 15.40 per ordinary share ($1.00 per
      ADR[5]) by the Company's Annual General Meeting of Shareholders

Commentary

Mr. Mikhail Shamolin, President and CEO of MTS, commented, "We
demonstrated solid growth during the quarter as we continue to execute on our
3i Strategy. We saw strong seasonal drivers improve our quarterly results.
For the Group, revenue in the second quarter increased more than 17% year
over year to reach $2.8 billion dollars. We see good seasonal trends in
rising voice and data usage, the healthy contribution from the sale of
handsets and consumption of higher-value products like voice and data roaming
and long distance."

Mr. Alexey Kornya, Vice President and CFO of MTS, added: "For
the period, Group OIBDA grew close to 12% year-over-year to reach $1.23
billion USD driven by top-line growth. Though we continue to see downward
margin pressure from our retail operations in Russia, we are making good
progress in developing our distribution channels, and our retail business
will reach our profitability goals by the end of year. Our fixed business in
Russia delivered a healthy OIBDA margin of 40.1%."

Mr. Shamolin continued: "Given our growth in the first half of
2010 and more positive economic sentiment, we feel confident to raise our
guidance for MTS Group to roughly 10% for 2010. This is predicated on:

    - Continued macroeconomic improvement;

    - The impact of retail on our top-line revenue growth;

    - Sustained increases in usage across all product lines and
      segments in our Russian business;

    - The impact of our recent acquisitions of Eurotel and
      Multiregion on our business;

    - Modest growth in Ukraine; and

    - The further development of our networks in our foreign
      subsidiaries.

Our guidance on Group OIBDA margin of 43 - 45% remains
unchanged, while we expect CAPEX to remain 22-24% of sales."

This press release provides a summary of some of the key financial and
operating indicators for the period ended June 30, 2010. For full disclosure
materials, please visit www.mtsgsm.com/resources/reports/.

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 103.8 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] Because Comstar-UTS and TS Retail were acquired from JSC
Sistema, the majority owner of MTS, Comstar and TS Retail, the acquisitions
were accounted for as transactions between entities under common control.
Similar to a pooling of interest, whereby the assets and liabilities of
Comstar and TS Retail were recorded at Sistema's carrying value, MTS'
historical financial information was recast to include the acquired entities
for all periods presented.

[2] See Attachment A for definitions and reconciliation of
OIBDA and OIBDA margin to their most directly comparable US GAAP financial
measures.

[3] See Attachment B for reconciliation of free cash-flow to
net cash provided by operating activity.

[4] 17.31% is owned by Comstar directly with another 7.69%
owned by MGTS Finance S.A., which is controlled by Comstar.

[5] According to the Russian Central Bank exchange rate of
30.7193 RUB/USD as of May 11, 2010. The dividend amount is set in Russian
rubles by the Board of Directors; U.S. dollar amounts provided for reference
using the foreign exchange rates as of May 11, 2010.

    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@mts.ru

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