Comstar Appoints New Vice President for Marketing.

MOSCOW -- "COMSTAR - United TeleSystems" JSC ("Comstar") (LSE:CMST), the leading combined telecommunications operator in Russia and the CIS, today announced the appointment of Sergey Nazarov as Vice President for Marketing. Mr. Nazarov was formerly Deputy General Director and Commercial Director of JSC Center Telecom.

Mr. Nazarov will be responsible for the development of an integrated marketing and branding strategy for the Group, as well as the enhancement of Comstar's competitive position through increased marketing activities, the creation of new tariff policy and the introduction of new products and services.

Mr. Nazarov graduated from the Moscow Institute for Physics and Technology, where he specialised in Applied Mathematics and Physics. He holds a Postgraduate degree from the Moscow Technology University for Communication and a degree in Finance from the Higher School of Economics. He also holds a PhD in Technical Sciences specialising in telecommunications. Mr. Nazarov previously worked for AT&T and Lucent Technologies in Moscow.

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.