Comstar Appoints Alexander Kirillov as Chief Technology Officer.

MOSCOW -- "COMSTAR - United TeleSystems" JSC ("Comstar") (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS, today announced the appointment of Alexander Kirillov as Chief Technology Officer of Comstar UTS, replacing Wolfgang Breuer who is leaving the Company. Mr. Kirillov is the former Deputy General Director and Technical Director of OJSC CenterTelecom, a provider of fixed-line telecommunications services in the Central Federal District of Russia.

Sergey Pridantsev, President and Chief Executive Officer, commented: "We view the active development and the efficient operation of our network as our key technical priority. Alexander Kirillov will focus on shaping and implementing our general technology policies. Mr. Kirillov will oversee the creation of the MGTS-based Unified Operations Department, the upgrading of the last mile network in order to enhance performance and expand our broadband capabilities, as well as the launch of a Wi-MAX network in the Moscow region."

Alexander Kirillov was born in 1956. Previously, he served as Deputy General Director and Technical Director of OJSC CenterTelecom. From 2004 to 2006, he held the position of First Deputy General Director and Technical Director of OJSC VolgaTelecom. From 2002 to 2004, Mr. Kirillov served as Deputy General Director and Branch Director of OJSC VolgaTelecom in the Republic of Mariy-El. From 1993 to 2002, he served as General Director of OJSC Martelecom. From 1991 to 1993, Mr. Kirillov headed the State Communications & IT Enterprise "Rossvyazinform" of Mari ASSR. From 1989 to 1991, he served as Director of the Communications Operations/ Engineering Department of Mari ASSR. From 1980 to 1989, he held several positions at the Republican Radio & TV Broadcasting Centre (RTVBC) of Mari ASSR. Alexander Kirillov is a graduate of Mari Polytechnic Institute and holds a degree in Radio Equipment Design and Manufacture.

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, CIS and Eastern European countries. Comstar had 3.6 million MGTS subscribers, almost 40,000 Comstar Moscow subscribers, nearly 500,000 Comstar Direct Internet subscribers, and over 90,000 regional and international subscribers, as at March 31, 2007. Comstar UTS reported increased operating revenues of US$ 329 million and consolidated assets of US$ 3.67 billion for the three months ended March 31, 2007. Comstar securities are listed under the symbol "CMST" on the Moscow Stock Exchange and 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.