COMSTAR UTS and MTT Sign Agreement to Introduce WLAN Roaming Services for WIFI Users in Moscow.

MOSCOW -- "COMSTAR - United TeleSystems" ("Comstar" or "the Group") (LSE:CMST), the leading combined telecommunications operator in Russia and CIS, and Multiregional TransitTelecom (MTT), Russia's national operator of domestic long-distance and international telecommunications, today announced that they have signed an agreement to provide wireless access through Comstar's Wi-Fi network to MTT's roaming partners. The service will therefore be provided via WLAN roaming to Russian and foreign mobile operators and Wi-Fi providers, with effect from the third quarter of 2007.

Comstar UTS has a wide network of Wi-Fi hot spots and plans to expand it further. Under the agreement with MTT, Moscow residents and its visitors will be able to have internet access through their Wi-Fi-enabled mobile devices (PCs, PDAs and smart phones). Comstar subscribers will be able to use Wi-Fi services on networks operated by third party operators that have roaming agreements with MTT.

Eric Franke, President and Chief Executive Officer, commented: "Within the framework of its broadband strategy, Comstar UTS is exploring new opportunities to promote its wireless access services and increase demand in the market for broadband solutions. The joint WLAN-roaming service will enable us to offer our corporate customers the ability to use wireless Internet while roaming on other carriers' networks, as well as to extend the offering to include mobile users".

Konstantin Solodukhin, General Director of MTT, added: "MTT is the first and only integrated provider of WLAN-roaming services in Russia. Our coverage is growing fast and already includes 10 major Russian cities. Comstar's involvement in the project will ensure the availability of Wi-Fi roaming services to Moscow residents and its visitors in the near future. We expect this service to grow dynamically within Russia and plan to expand the project to include all local Wi-Fi providers. Offering these services internationally is a logical step in the development of the project".

***

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

Comstar UTS is the leading combined telecommunications operator in Moscow and the Moscow region, both in terms of revenues and subscribers. Comstar UTS provides voice, data, Internet, pay-TV and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and unique last mile access to 98% of Moscow households. The Company also offers communications services in several Russian regions, and CIS and Eastern European countries. Comstar UTS had 3.6 million traditional fixed-line subscribers, over 500,000 alternative operator segment subscribers in Moscow, and almost 100,000 alternative segment subscribers in the Russian regions outside Moscow, as at December 31, 2006. Comstar UTS reported operating revenues of US$ 1.12 billion for the twelve months ended December 31, 2006, and had consolidated assets totalling US$ 3.54 billion as at the end of the period. Comstar UTS securities are listed under the symbol "CMST" on the Moscow Stock Exchange and the London Stock Exchange.

OJSC Multiregional TransitTelecom (MTT) (owned by JSFC Sistema - 50% and CJSC Gamma Capital - 50%), Russia's national operator of domestic long-distance and international telecommunications, was established in 1994 to ensure interconnection between telecom network operators. MTT offers telecom services and provides efficient interworking of over 300 cellular networks and more than 100 fixed-line networks in Russia between themselves, and with 50 international operators, and has signaling relations with over 300 overseas operators. In 2005 the company was granted license #32042 issued by Rossvyaznadzor to offer international and domestic long-distance communication services to end customers throughout Russia. The services are provided on the basis of a nationwide multiservice network with Points of Presence in all Russian regions.

For more information about services offered by the company visit www.mtt.ru

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 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