Mobile TeleSystems : MTS Optimizes Capital Structure

MOSCOW, Russia - Mobile TeleSystems Public Joint Stock Company ("MTS" or "the Company") (MOEX: MTSS), a leading provider of digital and media services and Russia's largest mobile operator, announces the transfer of quasi-treasury shares owned by MTS subsidiary and accounting for around 7.4% of MTS's share capital into closed-end mutual fund (CEIF). The deal will enable MTS to optimize part of its expenses connected with shares ownership as well as improve the efficiency of its capital and liquidity management.

MTS subsidiary, LLC Bastion, will transfer its 148 600 000 ordinary shares of MTS as contributions to the closed-end mutual fund.

The Management Company will have the voting rights with respect to the shares of MTS transferred to the closed-end mutual funds, as well as the right to receive dividends and dispose of them for investment purposes within the investment declaration. The guidelines for managing the MTS shareholdings transferred to the CEIFs include restrictions on their disposition and encumbrance. MTS keeps the right to further transfer of quasi-treasury shares to the investment fund as part of a unified strategy for managing share capital.
"Placing MTS quasi-treasury shares in the trust management of the Management Company will enable us to achieve several objectives simultaneously. First, MTS Group will be able to manage dividend flows on these shares more efficiently and optimize part of its expenses. Second, we will be able to manage part of the Company's liquidity more flexibly. And finally, the updated ownership structure will enhance MTS's ability to raise capital," said Alexey Katunin, MTS Vice President for Finance.
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Mobile TeleSystems Public Joint Stock Company ("MTS" - MOEX: MTSS) is Russia's ecosystem providing network-native digital services and largest mobile operator. The company offers a full range of solutions for consumers and business customers across wireless and wireline connectivity; over-the-top, linear, and satellite television; digital-first banking and financial services; as well as unified communications, cloud computing and IoT. There are more than 88 million mobile subscribers using MTS services across the company's operations in Russia, Armenia, and Belarus, including more than 80 million subscribers in Russia alone. In addition, MTS has a nationwide network of more than 4,600 owned and franchised retail outlets in Russia, and provides nearly 10 million clients with broadband, TV, and/or fixed-line telephone connectivity, over 12 million users - with OTT and pay TV services. The number of ecosystem clients exceeds 14 million. MTS's shares are listed on the Moscow Exchange under the ticker MTSS. For more information, please visit the company's Investor Relations website at ir.mts.ru.
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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company's most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including the ongoing geopolitical situation relating to the conflict in Ukraine, the expansion of sanctions imposed on the Russian Federation by the United States, European Union and United Kingdom, volatility in interest and exchange rates (including fluctuations of the value of the Russian ruble against the U.S. dollar and the Euro), commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.