MegaFon shares upgraded to the highest quotation list on the Moscow Exchange following the recent listing reform

Moscow, Russian Federation, 17-6-2014 — /EuropaWire/ — MegaFon (LSE: MFON), a leading Russian mobile operator (“MegaFon” or the “Company”), today announced its shares have been upgraded to the highest quotation list on the Moscow Exchange following the recent listing reform. Inclusion into this list broadens the range of potential investors and improves liquidity of Company’s shares.

MegaFon’s inclusion in the highest quotation list was announced during an official ceremony dedicated to the Moscow Exchange’ move to new listing rules, which leads to more stringent compliance for the issuers. At the same time, the new rules ease listing procedures and allow a wider number of issuers to qualify for the highest (Level I) quotation list, thus broadening investment opportunities for a number of institutional investors, including pension funds and state corporations, as they demand from the issuers higher liquidity, business transparency and corporate governance.

“We are glad that our shares have been admitted to trading under Level I quotation list on Moscow Exchange, and believe that this is an important event for our shareholders as the liquidity of our shares will improve”, said Dmitry Kononov, Director for Investor Relations and M&A, MegaFon.

This MegaFon share listing upgrade is the third since the company’s IPO. Ordinary MegaFon shares were initially admitted to trading under the listing “V”. On 19 August 2013, the Company’s ordinary shares were upgraded to quotation list “B”, and at the end of April 2014 they were once again upgraded to quotation list “A2”. Starting from today, the MegaFon’ shares are trading in the highest quotation list (Level I) on the Moscow Exchange.

“Admittance to the highest quotation list demonstrates high standards of our corporate governance. We attach great importance to strengthening our corporate governance and implement globally accepted best practices which help to make our management processes open and transparent”, Kononov added.

For more information

Notes to Editors

MegaFon OJSC is a leading Russian universal telecommunication service provider, operating in all segments of the telecommunications markets in 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. 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 has already started providing these services in 50 different regions. In October 2013 MegaFon completed the acquisition of a 100% interest in Scartel/Yota, which hold significant 4G/LTE licenses, from Garsdale Services Investment Limited, its shareholder and a member of the AF Telecom group (see below). The Company is a leader in the provision of mobile Internet, and in the number two position as to the number of active subscribers in Russia.

As a result of its acquisition of the Synterra Group, one of the leading Russian backbone operators, in September 2010, MegaFon substantially increased its fixed-line B2B and B2G businesses, as well as its provision of fixed broadband services In September 2012 the Company acquired the VAS Media group of companies, which was 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% by December 2015.

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 (approximately 2.54%) and by a wholly owned subsidiary of the Company (7.57%, of which Mr. Tavrin has the right to acquire up to 2.5% prior to 2017), while the public float represents approximately 14.71% of the outstanding shares.

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

Cautionary Statement Regarding Forward Looking Statements
Some of the information in this document may contain or refer to projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as “expect”, “believe”, “anticipate”, “estimate”, “forecast”, “intend”, “will”, “could”, “may”, or “might” the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions, and are based upon various assumptions which are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. We may not achieve or accomplish these plans or predictions. The Company does not necessarily intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries in which the Company operates, as well as many other risks specifically related to the Company and its business and operations.