Comstar Appoints Mladen Pejnovic as Vice President for International Business Development.

MOSCOW -- "COMSTAR - United TeleSystems" ("Comstar UTS") (LSE:CMST), the leading combined telecommunications operator in Moscow and the Moscow region, today announced the appointment of Mladen Pejnovic as Vice President responsible for international business development. Mr. Pejnovic will head the newly created business unit "Comstar International" dealing with the Company's asset management in and outside the CIS countries.

"Comstar International" is the latest business to be established as a result of creating a new management structure of the Company. Mladen Pejnovic will focus on strengthening the affiliates' and subsidiaries' positions abroad, as well as exploring opportunities for acquiring new assets outside Russia.

Mladen Pejnovic was born on May 27, 1953, in Zagreb, Croatia. Previously, he served as Vice President - Director of Transformation Project Office of Golden Telecom, Moscow and First Deputy General Manager of Sovintel, Moscow. From 2002 and to 2005, he was General Director of Golden Telecom, Ukraine. From 2001 to 2002 Mladen Pejnovic served as Senior Vice President of MCT Corporation. From 1997 to 2000, he held several senior positions in companies within the Golden Telecom Holding Inc. From 1995 to 1997, he served as Marketing and Sales Director of Millicom International Cellular. Mladen Pejnovic is a graduate of Zagreb University (Croatia) and holds a degree in Economics.

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.

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