MTS Acquires Multiregion (MBT)

Mobile TeleSystems OJSC 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.