Investor Presentaiton

☐ MTS a step ahead MTS retail network development MTS continues to expand its retail chain with a focus on smaller markets to drive sales of higher-margin data products and services At the end of Q2 2012, MTS retail network comprised 4,156 stores, including 1,560 franchised outlets. MTS plans to increase its retail footprint by up to 500 stores till the end of the year, of which 60 will be flagship locations Expansion of the MTS retail network, 2010 – 2012 4588 4 156 3 343 3 373 1 655 1 560 1 134 1 130 2933 2596 2209 2243 Q2 2010 Q2 2011 Q2 2012 Franchise stores Q4 2012E Own stores Smartphones* sales and penetration, 2010 – 2012 35% 30% 25% Sales increased by 8% quarter- 30.0% 27.0% 23.3% 17.4% 20% over-quarter in terms of units sold in Q2 2012 >20% 15% 12.4% 17.2% 8.4% 10% 14.0% 11.6% 10.4% 5% ☐ Sales of smartphones in the 6.3% 0% sales mix advanced by 10pp year-over-year in terms of units sold in H1 2012 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012E sales of smartphones through MTS retail network as % of total handsets sold in units smartphones penetration as % of all registered mobile phones on MTS network *MTS defines a smartphone as a handset with one of the following operating systems: iOS, Android, Windows, Blackberry OS, Symbian, Linux or Bada 19

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