MTS to Launch "360 From MTS" - an Innovative Suite of Mobile Internet Services

MOSCOW, June 21, 2010 - Vodafone, the world's leading international mobile
communications group, and Mobile TeleSystems OJSC ("MTS" - NYSE: MBT), the
leading telecommunications provider in Russia and the CIS, have announced at
the Saint Petersburg International Economic Forum 2010 the planned launch of
360 from MTS - an innovative suite of Internet services that integrate a
customer's social networks, email and mobile content in an intuitive and
friendly user experience. 360 from MTS is based on the Vodafone 360 service
and has been adapted for the Russian market.

"360 from MTS raises the bar for mobile user experience by
creating a truly integrated interface for access to mobile Internet services.
The service is unique in its ability to expand the reach of innovative
services to a wide range of subscribers, as it can be installed on virtually
any mobile device. The launch of 360 from MTS is an important step in the
implementation of our 3i strategy which stands for integration, Internet and
innovation. We are confident of its success in the Russian market, given the
increasing demand for mobile Internet and content services in our country,"
commented Mikhail Shamolin, President and CEO of MTS.

Pieter Knook, Director of Internet Services at Vodafone Group,
said: "We are delighted at the development of our Vodafone 360 service to
embrace the Russian market. This is an important step in the relationship
between our two organizations. A significant amount of work has gone into
developing the Russian version of 360 People, which we are proud is being
demonstrated on the MTS stand at the Saint Petersburg International Economic
Forum 2010, and I congratulate our two respective teams on this achievement."

The commercial launch of 360 from MTS is planned for the 4th
quarter of 2010.

About 360 from MTS

360 from MTS is an innovative suite of Internet services for
the mobile and PC which gathers all of a customer's friends, communities,
entertainment and personal favorites (like music, games, photos and video) in
one place. All of a customer's contacts, status updates and messaging
services are brought together, enhancing the customer's experience and use of
social media.

360 customers will have access to content from MTS as well as
to applications from the global community of developers publishing for
Vodafone 360. There are already around 9,000 mobile applications in the 360
Shop.

MTS will be leveraging Vodafone's affiliation with both JIL
and WAC to give Russian developers access to the global development ecosystem
Vodafone has created for 360. Strong engagement with Russian developers will
ensure that users of 360 from MTS will have a rich and compelling local apps
offering.

360 services are compatible with over 100 popular handsets
already in the market. They include most manufacturers and most operating
systems. The services come either pre-embedded or free to download. MTS also
plans to launch a range of new phones with 360 services preinstalled as well
as exclusive, bespoke 360 phones.

Notes to Editors

1) Joint Innovation Lab (JIL) was founded in 2008 by the
world's largest operators China Mobile Ltd, SOFTBANK, Verizon Wireless and
Vodafone to build the ecosystem, providing a single direction and standard
for developers to create mobile applications. JIL has established a single
free standard for the development of different widgets and applications for
mobile phones running on different operating systems, and especially for
smartphones running 360 services.

2) The Wholesale Applications Community (WAC) has been
established to increase the overall market for mobile applications. WAC will
achieve this goal by: encouraging open standardized technologies; driving
scaled deployment of those technologies; and providing complimentary
commercial models.

This will allow developers to deploy a single application
across multiple devices (through the use of standard technologies) and across
multiple operators (without the need to negotiate with each of them). WAC
will provide the commercial enablers which will allow the developer to be
paid for the applications which are then sold through any associated
application store.

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

About MTS

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 103.2 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.

About Vodafone

Vodafone is the world's leading international mobile communications group
with approximately 341 million proportionate customers as at 31 March 2010.
Vodafone currently has equity interests in 31 countries across five
continents and around 40 partner networks worldwide. For more information,
please visit www.vodafone.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