MegaFon OAO GDR : Announcement of transaction in ordinary shares by directors

MOSCOW, Russia (24 May 2013) - OJSC MegaFon («MegaFon» or the «Company") (LSE: MFON) announces that on May 21, 2013 Mr. Sergey Soldatenkov, Chairman of the Board, purchased 79 506 of the Company's ordinary shares in the form of Global Depositary Receipts for the total consideration of US$ 2.537 million. Following this transaction, the interest held by Mr. Soldatenkov in the Company represents 0.0128% of voting rights.

On May 17, 2013 Mr. Valery Ermakov, Director of Regional Operations, purchased 4 940 of the Company's ordinary shares at the total price of RUR 4.989 million. Following this transaction, the number of shares held by Mr. Ermakov is 4 940 ordinary shares in the Company which represents 0.0008% of voting rights.

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MegaFon OJSC is a leading Russian universal telecommunication service provider, operating in all segments of the telecommunications markets in Russia. MegaFon was incorporated in June 1993 as CJSC "Northwest GSM" and renamed OJSC "MegaFon" in 2002. MegaFon was the first operator with a network covering all regions of Russia. The Company and its subsidiaries have licenses to operate in all of the Russian regions and in the Republics of Abkhazia, South Ossetia and Tajikistan. The Company was the first in Russia to launch 3G for commercial operations and is currently in the number one position among all operators in the provision of mobile Internet, and in the number two position as to the number of active subscribers in Russia.

In 2009, MegaFon was selected as the Mobile General Partner of the XXII Winter Olympic Games and XI Paralympic Games to be held in Sochi in 2014.

As a result of its acquisition of the Synterra Group, one of the leading Russian backbone operators, in June 2010, MegaFon substantially increased its fixed-line B2B and B2G businesses, as well as its provision of fixed broadband services. In July 2012 MegaFon was awarded one of four ten-year licenses for the provision of 4G/LTE services throughout the entire Russian Federation and, through its MVNO arrangement with Yota, has already started providing these services in 81 towns and cities in 29 different regions by the end of March 2013. In September 2012 the Company acquired the VAS Media group of companies, which are now being integrated with MegaLabs, its R&D subsidiary. In December 2012 the Company acquired a 25% interest in the Euroset retail chain, the largest chain in Russia providing telecommunications goods and services, and is committed to acquire a further 25% within the next three years.

In November 2012 MegaFon successfully completed an initial public offering on the Moscow Stock Exchange and the London Stock Exchange. MegaFon has two principal shareholders, companies in the AF Telecom group (approximately 50.01%) and the TeliaSonera group (approximately 25.17%). Additional shares are held by its CEO, Ivan Tavrin (2.50%) and by a wholly owned subsidiary of the Company (7.57%, of which Mr. Tavrin has the right to acquire up to 2.50% at various times prior to 2017), while the public float represents approximately 14.75% of the outstanding shares.