MTS Secures ECA financing from Citibank and SEK

Moscow, Russian Federation - Mobile TeleSystems OJSC ( MTS - NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the conclusion of a credit facility with Citibank Europe PLC (Citibank) and Swedish Export Credit Corporation (SEK) for up to $300 million. The credit facility is supported by Sweden's Exportkreditnamnden (EKN) and will be used for the development of the Company's mobile networks through purchases of equipment from Ericsson, the worlds leading provider of technology and services to telecom operators.

The facility will be made available in one tranche with maturity in July 2024 and have an annual interest rate based on LIBOR. The amounts may be drawn by the Company over the next 12 months and will be linked to equipment purchases for the development of MTS's LTE networks.

Citibank Europe PLC facilitated the arrangement by serving as Mandated Lead Arranger, and Citibank International plc acted as Facility Agent; SEK also acted in an arranging capacity for the facility. Both Citibank and SEK acted as Original Lenders.

Alexey Kornya, Vice President, Finance and Investments, and CFO of MTS, commented, We are pleased to add another chapter to our long-term partnership with Ericsson, EKN, SEK and Citibank through the conclusion of this credit facility. Our on-going cooperation with Ericsson, coupled with the support of EKN, gives us valuable resources to further develop our market-leading voice and data networks in Russia."

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For further information, please contact in Moscow:

Joshua B. Tulgan

Director, Corporate Finance & 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 worlds fastest growing regions. Including its subsidiaries, the Group services over 100 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, 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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LINK:	http://www.mtsgsm.com/news/2014-03-12-51258/...
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