Comstar Elects New Board of Directors.

MOSCOW -- "COMSTAR - United TeleSystems" JSC ("Comstar") (LSE:CMST), the leading combined telecommunications operator in Russia and the CIS, today announced that, following the Extraordinary General Meeting of its Shareholders on September 4, 2007, the new Board of Directors of the Company was elected.

The shareholders approved the new Board of Directors as follows:

1. Anton Abugov, First Vice President, Head of Strategy and Development of Sistema

2. Anatoly Akimenko, Head of Department, Vice President of Access Industries (Eurasia)

3. Vladislav Vasin, Director of the Department of Technological Development of Sistema

4. Dietmar Kuhnt, Member of Supervisory Boards of Allianz-Versicherungs-AG, BDO Deutsche Warentreuhand AG, Dresdner Bank AG, GEA Group AG, Hapag Lloyd AG, Hochtief AG and TUI AG; Independent Director of Comstar UTS 

5. Shamil Kurmashov, Deputy Director of Finance and Investments Division, Director of Investments Division of Sistema

6. Sergey Pridantsev, President and CEO of Comstar UTS

7. Yngve Redling, Chairman of the Swedish-Russian bilateral working group for Information Technology, Independent Director of Comstar UTS

8. Vladimir Uvakin, Head of Corporate Property Department of Sistema

9. Dmitry Ustinov, Head of Financial Department of Sistema

Anton Abugov was elected as Chairman of Comstar's Board of Directors.

Mr. Abugov commented: "Comstar UTS is one of Sistema's key telecommunications assets and we are fully committed to its further operational development and exploring all opportunities for increasing its competitive advantages. The newly elected Board of Directors will focus on coordinating management activities aimed at fulfilling Comstar's strategic objectives, including increasing its operational efficiency and generating additional shareholder value."

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

Comstar UTS is the leading integrated 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 CIS. Comstar had 3.6 million residential subscribers in Moscow including 398,000 broadband internet subscribers, almost 105,600 corporate subscribers in Moscow, and approximately 90,100 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.