Comstar Establishes Management Board.

MOSCOW -- "COMSTAR - United TeleSystems" JSC ("Comstar") (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS, today announced the establishment of a new executive body, the Management Board of Comstar UTS.

The Management Board comprises the following members:

* Sergey Pridantsev - President and Chief Executive Officer

* Alexey Goltsov - General Director of JSC MGTS 

* Alexey Goncharuk - Vice President & Head of Operations

* Sergey Nazarov - Vice President for Marketing

* Dmitry Karmanov - Human Resources & Personnel Director

* Victor Koresh - Vice President for the Regional and International Development of the Group's Operations

* Nikolay Tokarev - Vice President for Finance and Economics

Sergey Pridantsev was appointed as Chairman of the Management Board, Alexey Goltsov was appointed as Deputy Chairman of the Management Board.

In addition, the management structure of the Group is being augmented by the creation of sub-committees at the Management Board level - the Budget and Investment Committee; the Tariffs Committee; the Technical Committee; and the Purchasing Committee.

Sergey Pridantsev, President and CEO of Comstar UTS, commented: "The creation of the Management Board and its committees reflects our commitment to enhancing our corporate governance by reinforcing and simplifying our operational responsibilities and reporting lines. This structure will accelerate decision-making and facilitate greater focus on strategic planning and execution. It will also enable us to implement group-wide policies, to accelerate the integration of new businesses, to identify and exploit synergies, and to streamline the business as a whole."

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.