Comstar UTS Announces Appointment of New Chief Executive Officer.

MOSCOW -- "COMSTAR - United TeleSystems" ("Comstar UTS") (LSE:CMST), the leading provider of integrated communications services in Moscow, today announced the appointment of Eric Franke as Chief Executive Officer. Semyon Rabovsky, who has until recently served in this position, has been appointed the Deputy General Director of CJSC "Sistema Telecom". Mr. Franke has previously held the position of First Vice President and Chief Operating Officer of OJSC "Mobile TeleSystems".

Sergey Schebetov, Chairman of the Board of Directors of Comstar UTS, commented: "Comstar UTS has nearly completed its organizational restructuring and achieved stable financial results in the first quarter of 2006. In the next stage of the Company's development, the new management should further improve its operational efficiency and transparency of Comstar's business. I believe that Eric has the right experience to lead the Company in its further growth. Mr. Franke has over 20 years of international telecommunications experience and over 10 years of experience in the Russian market. He joins Comstar UTS to further strengthen the Company's position in the regions, expand its brand portfolio and grow its shareholders' value."

Eric Franke has served as the First Vice President of OJSC MTS since 2005. In 2001, he was General Director of UMC. He had held several positions at GTS (later renamed Golden Telecom) - first as the Director of Mobile Communications in 1998 and then as the President of the company in 1999. In 1994, Mr. Franke served as the Vice President of Ericsson in Russia and the CIS countries. Prior to that appointment he was Director of Mobile Communications at Ericsson from August 1998. In 1984, he joined Koning & Hartman. From 1982 to 1984 he worked at Ericsson. Mr. Franke is a graduate of the Delft University. He was born in 1955. He will join the Company from August 1, 2006.

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

Comstar UTS is a leading provider of integrated communications services in Moscow and the Moscow region in terms of revenues and subscribers and also offers communications services in other regions of Russia and the Commonwealth of Independent States. Comstar UTS had 3.6 million subscribers at March 31, 2006. Comstar UTS offers voice, data and Internet, pay-TV and various value-added services to corporate, operator and residential subscribers, using its alternative and traditional fixed-line networks. Comstar UTS had combined operating revenues of US$ 249.8 million for the first three months of 2006 and Comstar UTS' assets totalled US$ 2.67 billion at March 31, 2006. Comstar UTS ordinary shares are listed on the Moscow Stock Exchange and on the London Stock Exchange under the symbol "CMST".

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 you 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.