14 May 2010

MTS and X5 Retail Group announce creation of mobile virtual network operator

Moscow, 14 May 2010

Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, and X5 Retail Group N.V., Russia’s largest retailer in terms of sales (Pyaterochka, Perekrestok and Karusel retail chains), concluded an agreement to create a mobile virtual network operator (MVNO) on the basis of the MTS’ mobile radio-telephone network. Subscription to its services will start in Perekrestok and Karusel stores of Moscow and Moscow region by end of summer 2010.