27 July 2017

Moscow, Russia - MTS PJSC (NYSE: MBT, MOEX: MTSS), the leading telecommunications operator in Russia and the CIS, announces the acquisition of 100% of shares in the regional network operator Bashkortostan Cellular Communication OJSC (BCC) for RUB 300 mln including net debt.

The transaction allows MTS to strengthen its presence in the Republic of Bashkortostan by obtaining additional frequency resources, including two bands of 15 MHz at 2,100 MHz, as well as two bands of 4.4 MHz in the 450 MHz spectrum.

Andrei Ushatskiy, Vice President for Technology and IT, MTS commented: "The acquisition of a significant frequency resource at a reasonable price in Bashkortostan, one of Russia’s ten largest regional telecom markets, is fully aligned with MTS’ strategy of enhancing the Group’s capabilities throughout Russia’s regions. With this investment, we are directly increasing our 3G network capacity and speed in Bashkortostan by doubling the frequency resource in the 2,100 MHz band. We intend to use these frequencies to further develop our data networks.”

MTS acquired BCC from Rostelecom’s subsidiary Bashinformsvyaz PJSC.

MTS has obtained all relevant corporate approvals for the transaction.