COMSTAR UTS Announces New Appointments.

MOSCOW -- "COMSTAR - United TeleSystems" ("Comstar UTS") (LSE:CMST), the leading provider of integrated communications services in Moscow, today announced two appointments, which reflect the new organizational structure of the Company.

Irina Matveyeva has been appointed as Chief Financial Officer at Moscow City Telephone Network (MGTS), where she will be responsible for the unification of MGTS and Comstar-UTS' financial policies. Viktor Chervony, who has until recently served in this position, has been appointed as Director of the Department for Services Economics & Investment Planning at Comstar-UTS' Corporate Center. Mr. Chervony will be responsible for liaison with the regulatory authorities and the economic assessment of regulated tariffs across the Group.

Semyon Rabovsky, CEO of Comstar UTS, commented: "The ongoing changes in the management team are part of the organizational restructuring intended to strengthen key operating areas within the Group. Viktor Chervony's expertise and broad knowledge of the telecommunications sector will serve the Group interests well."

"In her new role at MGTS, Irina Matveyeva will address the further integration of the Group's companies, and ensure the creation of a uniform financial management system across the Group," - said Aleksey Goltsov, CEO of MGTS.

Irina Matveyeva joined Comstar UTS in 1997 and recently served as Director of Financial Planning. Ms. Matveyeva holds a degree in Economics from the Moscow Technical University of Communications & Informatics, and an MBA from the University of Antwerp.

Viktor Chervony joined OJSC MGTS in 1996 and recently served as a Chief Financial Officer. Mr. Chervony holds a degree in Engineering from the Moscow Civil Aviation Engineers Institute; a degree in Financial Management from the Academy of National Economy under the Government of the Russian Federation; and a degree in Finance from the All-Russian Financial/Economics Institute.

For further information, please visit www.comstar-uts.com.

Comstar UTS is a leading provider of integrated communications services in Moscow and the Moscow region in terms of revenues and subscribers and also offers communications services in other regions of Russia and the Commonwealth of Independent States. Comstar UTS had 4.2 million subscribers at December 31, 2005. Comstar UTS offers voice, data and Internet, pay-TV and various value-added services to corporate, operator and residential subscribers, using its alternative and traditional fixed-line networks. Comstar UTS had combined operating revenues of US$ 907.6 million for the full year 2005 and Comstar UTS' assets totalled US$ 1.64 billion at December 31, 2005. Comstar UTS ordinary shares are listed on the Moscow Stock Exchange and on the London Stock Exchange under the symbol "CMST".

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 Comstar UTS. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. Comstar UTS wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Comstar UTS does not 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 Comstar UTS, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Comstar UTS operates in, as well as many other risks specifically related to Comstar UTS and its operations.