MTS Signs a Syndicated Loan Facility Agreement

MOSCOW, May 18 /PRNewswire-FirstCall/ -- Mobile TeleSystems OJSC ("MTS" -
NYSE: MBT), the largest mobile phone operator in Russia and the CIS,
announces that it has signed a facility agreement to refinance a portion of
its $1.33 billion syndicated loan facility.
Having concluded negotiations with a consortium of banks, MTS signed the
facility agreement to refinance the first tranche of its existing $1.33
billion syndicated loan facility in the amount of $630 million that was
scheduled to mature in May 2009. The Company raised $295 million for facility
A and EUR214.5 million for facility B to be followed by an additional tranche
(amount to be further disclosed) in the coming weeks as part of the new
facility. The facility will mature in 2012 and will have an interest rate of
LIBOR+6.5%.
The Mandated Lead Arrangers are Absolut Bank, Bank of China (Eluosi),
Bank of America, N.A., Bank of China (UK) Limited, Banque Societe Generale
Vostok (Moscow), Bayerische Landesbank, BNP Paribas, Credit Suisse
International, Export Development Canada, HSBC Bank plc, ING Bank N.V.
(London branch), ING Bank N.V., Dublin Branch, JPMorgan Chase Bank, N.A.,
Societe Generale Corporate and Investment Banking (Paris), The Royal Bank of
Scotland PLC, UniCredit Bank Austria AG, WestLB AG (London branch) and ZAO
UniCredit Bank. Credit Suisse International and ING Bank N.V. (London Branch)
acted as co-ordinating banks for the refinancing and ING Bank N.V. (London
branch) is acting as the Facility Agent.
"Given the volatile international credit markets, our success in working
with our core relationship banks and develop new banking partnerships to
refinance the facility is a true testament to the strong fundamentals of our
business. This facility provides MTS with additional financial flexibility to
continue our investment programs and meet our future obligations," commented
Mr. Aleksey Kaurov, Director of Corporate Finance at MTS.
Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in
Russia and the CIS. Together with its subsidiaries, the Company services over
93.03 million subscribers. The regions of Russia, as well as Armenia,
Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which MTS and its
associates and subsidiaries are licensed to provide GSM services, have 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 MTS can be found on MTS' website at
http://www.mtsgsm.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 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, 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, 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:
Mobile TeleSystems, Moscow
Investor Relations
Tel: +7-495-223-2025
E-mail: ir@mts.ru

SOURCE MTS Mobile TeleSystems

For further information, please contact: Mobile TeleSystems, Moscow, Investor
Relations, Tel: +7-495-223-2025, E-mail: ir@mts.ru