Comstar Adds the 100,000th Pay-TV Subscriber in Southern Russia.

MOSCOW -- "COMSTAR - United TeleSystems" JSC ("Comstar" or "the Company") (LSE:CMST), the leading integrated telecommunications operator in Russia and the CIS, today announced that the cable TV residential subscriber base of its Digital Telephone Networks South ("DTN") subsidiary reached 100,000 by the end of 2007. DTN is the largest alternative telecommunications operator in the Southern Federal District of Russia.

DTN launched its "DTN-TV" branded pay-TV service in November 2005. The service is available in Rostov-on-Don, Azov, Aksay, Belaya Kalitva, Taganrog, Shakhty and other towns in the Rostov region.

DTN had already built a modern hybrid fiber-coaxial cable TV network and launched 50 multi-theme channels by November 2005, which included the most popular Russian-language satellite channels and principal free-to-air channels. DTN was the first cable TV operator in Rostov to offer a premium digital channel package in August 2007.

Comstar continues to actively develop its broadband pay-TV network and services in the Southern region of Russia, and it plans to increase the number of channels in its package offering from 80 to 100. Comstar also intends to provide high speed Internet access, based on the Metro Ethernet technology, in households covered by the DTN cable TV network, and to launch city-scale cable TV networks in Krasnodar, Novocherkassk and Donetsk (the Rostov region). In addition, the Company plans to launch an IP-TV service to residential subscribers in the first quarter of 2008 and has already soft-launched the service in Rostov-on-Don in October 2007.

Viktor Koresh, Vice President for Regional Development, commented: "We have been working in the pay-TV market in the Southern region for the last two years and the addition of the 100,000th subscriber for DTN-TV as a key milestone. This development is in line with our goal to maintain our leading position in the telecommunications market by providing our customers with a broad range of high-quality communications services."

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

Comstar UTS is the leading fixed-line telecommunications company in Moscow, 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 exclusive last mile access to 98% of Moscow households. The Company also offers communications services in five Russian regions and certain CIS countries. Comstar had 3.6 million residential subscribers in Moscow, 452,600 broadband internet subscribers in Moscow, 108,600 corporate subscribers in Moscow, and approximately 94,100 regional and international subscribers, as at September 30, 2007. Comstar UTS reported operating revenues of US$ 1,080 million and a 43% OIBDA margin for the nine months ended September 30, 2007. Comstar GDRs are listed under the symbol "CMST" on the London Stock Exchange.

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.