Comstar UTS Announces New Appointments.

MOSCOW -- "COMSTAR - United TeleSystems" ("Comstar UTS") (LSE:CMST), the leading provider of integrated communications services in Moscow, today announced a number of new appointments in order to optimize the organizational structure of the Company.

Alexey Goncharuk has been appointed as Deputy Chief Executive Officer for Strategy and Business Development. Mr. Goncharuk will supervise the creation and implementation of a unified business strategy, as well as the coordination of the Company's commercial activities, and cooperations with other telecom operators.

Dmitry Dronov has been appointed as Deputy Chief Executive Officer for Marketing. Mr. Dronov will be responsible for creating a unified marketing and branding policy, introducing and promoting new products and services, and establishing a unified sales and client support centre.

Eugene Yurchenko has been appointed as Deputy Chief Executive Officer for the Regional Development Department, where he will be responsible for mergers and acquisitions and coordinating the Company's regional expansion. These functions have now been merged into a single department. This new department will focus on expanding the Company's presence in the most promising regions by means of mergers and acquisitions, as well as improving the performance of Comstar UTS subsidiaries. Yuri Pavlenko, who has until now served as Deputy Chief Executive Officer for Regional Development, will act as an advisor to the Chief Executive Officer.

Semyon Rabovsky, CEO of Comstar UTS, commented: "These changes have been implemented in order both to strengthen and expand our existing operations, as well as to ensure more effective integration across the Group. These steps will help us to increase the quality and competitive position of our businesses, as well as to further enhance the Company's investment profile".

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 4.2 million subscribers at December 31, 2005. 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$ 907.6 million for the full year 2005 and Comstar UTS' assets totalled US$ 1.64 billion at December 31, 2005. 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.