Ad Hoc Notice

January 27, 2011

Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has been notified by Mobile TeleSystems Finance S.A. (“MTS Finance”), a wholly owned subsidiary of MTS, that MTS Finance was served with a freezing order issued by the English High Court of Justice on January 26, 2011 (the “Order”).

The Order was issued in connection with the enforcement of an arbitration award in favor of Nomihold Securities Inc. (“Nomihold”) dated November 11, 2010 requiring MTS Finance to pay $170 million plus costs, interest, and $5.88 million in dividends (the “Award”) first reported by MTS on November 22, 2010, and reaffirmed on January 5, 2011, upon its finalization by the London Court of International Arbitration (LCIA). Among other things, the Order states that MTS Finance may not remove assets in England and Wales up to the amount of $208,113,544.60 or “in any way dispose of, deal with or diminish the value of any other of its assets” outside England and Wales up to the same value.

As previously announced on January 24, 2011, MTS is currently engaged in a cash tender offer to acquire any and all of the outstanding senior unsecured USD-denominated Eurobonds in the amount of $400 million with an annual interest rate of 8.00% due January 28, 2012 issued by MTS Finance and guaranteed by MTS.

MTS does not believe that the Order applies by its terms to MTS or that the Order should prevent the completion of either the tender offer or the solicitation of waivers and consent on its outstanding senior unsecured USD-denominated Eurobonds in the amount of $750 million with an annual interest rate of 8.625% due in June 2020 issued by MTS International Funding Limited(1). Nonetheless, MTS intends to seek further clarifications.

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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

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

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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 108.1 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.

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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.

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(1) A private company organized and existing as a private limited company under the laws of Ireland.

MOBILE TELESYSTEMS OJSC

By:

/s/ Mikhail Shamolin

Name:

Mikhail Shamolin

Title:

CEO

Date: January 27, 2011