MTS Acquires Multiregion

MOSCOW, July 16, 2010 - Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the leading
telecommunications provider in Russia and the CIS, announces that it has
acquired a 100% stake in CJSC Multiregion ("Multiregion"), one of the leading
groups of broadband and cable TV providers in the Russian regions, from
Cavolo Trading Limited (Cyprus).

The purchase price amounts to $123.5 million. MTS will also
assume debts totaling roughly $94.4 million.

Multiregion is a group of broadband and cable TV providers
with presence in 37 cities of the Russian Federation. The current network
coverage of the company is around 1.8 million households, of which 1.3
million are FTTB-based. Multiregion has approximately 700,000 cable TV
subscribers and 260,000 broadband subscribers.

"The acquisition will significantly enhance our position in
the rapidly growing broadband and cable TV markets in the Russian regions. As
the largest integrated telecommunications provider in Russia and the CIS, MTS
will be able to provide its customers a broad, innovative and bundled
offering of mobile and fixed line telephony, high-speed broadband internet
access and television services in over 110 cities in Russia. It fits
perfectly into our '3i' strategy, as it allows us to expand our integrated
service portfolio and to differentiate our products from the competition,"
commented Mikhail Shamolin, President and Chief Executive Officer of MTS.

Multiregion's financial results will be consolidated in the
Company's financial statements beginning from July 16, 2010.

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 103.5 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.

    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