7. Major events

7. Major events

1. MTS brand is the most expensive Russian brand

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According to the results of annual rating of one hundred leading world brands BRANDZÖ, the international research agency Millward Brown and Financial Times for 2010, MTS held the 72-nd position with brand value in the amount of $9.7, thus the third year in succession MTS brand is recognized as the most expensive Russian brand. In 2008 MTS became the first Russian company in the history of BRANDZÖ rating that was included in the list of one hundred major world brands.

MTS brand estimated at $7.753 bln. was also recognized as the most expensive Russian brand in the rating of Best Russian Brands-2010 of international Interbrand agency.

Within the framework of integration of telecommunication assets and obtaining a full control over the brands of MTS Group the company acquired trademarks used by MTS and its subsidiaries in December 2010 from AFK Sistema.

Enhancement of MTS shares attractiveness

Change of ratio between the American Depository Shares (ADS) and ordinary shares from 1:5 to 1:2 beginning since May 3, 2010. It allowed to bring the cost of ADS in compliance with the price level of comparable companies shares and enhanced the attractiveness of shares for a wider range of investors.

In November 2010 MTS declared transfer of ordinary shares of the company in quotation list "A1" at the MICEX for the purpose of improving share liquidity due to the expansion of the investor base that had an opportunity to trade MTS ordinary shares.

Confident management of debt portfolio

Placement of Eurobonds in June 2010 for the amount of $750 million at the interest rate of 8.625% per annum with repayment period in June 2020. Listing was done at the Irish Stock Exchange Limited.

In November 2010 MTS also placed ruble bond issues of series 07 and 08 for a total amount of RUB 25 bln. included in quotation list "└" of the first level at Moscow Interbank Stock Exchange (MICEX).

Completion of the transaction on sales by the Group of companies COMSTAR-UTS to Rostelecom OJSC of Svyazinvest OJSC ordinary shares totaling 25% of its share capital plus one share for RUB 26 billion.

4. Stable high dividends

Approval by the General Shareholders' Meeting of dividend payment for 2009 in the amount of RUB 15.40 per one ordinary registered share of MTS OJSC that totaled in general RUB 30.70 bln.

5. Acquisition of alternative telecom operators in Russia within the framework of "3i" Strategy

Acquisition of 100% of Multiregion CJSC share capital, one of the Top Russian regional operators of broadband Internet access and cable TV for $123.5 mln. Acquisition of alternative operators in Novosibirsk and Saint-Petersburg.

6. Promotion of new technologies in the CIS

MTS energetically promotes 3G technologies in Armenia, Uzbekistan and Belarus. MTS was one of the first companies in the CIS and Central Asia to launch 4G network (LTE) in Uzbekistan.

7. COMSTAR-UTS' merger to MTS

Approval by the Extraordinary General Shareholder's Meeting of MTS OJSC in December 2010 of COMSTAR-UTS OJSC merger to MTS OJSC became a final step in acquisition by MTS of one of the leading players of fixed business market that began in October 2009.