Comstar UTS Announces The Election of Two Independent Directors to the Board.

MOSCOW -- "COMSTAR - United TeleSystems" ("Comstar UTS") (LSE:CMST), the leading provider of integrated telecommunication services in Russia and the CIS, today announced the results of its Extraordinary General Meeting of Shareholders (the "EGM") held on December 12, 2006. The EGM elected Mr. Ditmar Kunt and Mr. Yngve Redling as independent members of the Board of Directors. Simultaneously the EGM elected Mr. Eric Franke and Mr. Shamil Kurmashov to the Board and reelected five of its existing Board members.

The newly elected Board of Directors is composed of the following members:

1.   Sergei Bayda - Deputy Chief Executive Officer for Strategy,
     Sistema Telecom

2.   Alexey Goltsov - Chief Executive Officer, MGTS

3.   Georgy Kikvadze - Director for Investments, Sistema Telecom

4.   Ditmar Kunt - Member of Supervisory Boards:
     Allianz-Versicherungs-AG; BDO Deutsche Warentreuhand AG;
     Dresdner Bank AG; GEA Group AG; Hapag Lloyd AG; Hochtief AG;
     TUI AG

5.   Shamil Kurmashov - Deputy Chief Executive Officer for Finance
     and Investments, Sistema Telecom

6.   Vladimir Lagutin - Member of the Board of Directors of
     Sistema Telecom

7.   Eric Franke - Chief Executive Officer, Comstar UTS

8.   Yngve Redling - Chairman of the Swedish-Russian/CIS Chamber of
     Commerce. Chairman of the Swedish-Russian bilateral working group
     for Information Technology

9.   Sergei Shchebetov - Chief Executive Officer, Sistema Telecom

The Board has reelected Mr. Sergei Shchebetov, Chief Executive Officer of Sistema Telecom, as the Chairman of the Board of Directors of Comstar UTS.

Sergei Shchebetov, Chairman of the Board of Directors of Comstar UTS and General Director of Sistema Telecom, commented: "The election of two independent members to our Board of Directors will help us improve the standards of corporate governance in the Group. I look forward to working with the newly elected Board to increase the quality of disclosure and the transparency of the decision making process".

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 in its traditional segment of the business, 477.3 thousand subscribers in its alternative segment in Moscow and 92.2 thousand subscriber in its alternative segment in the regions at September 30, 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 consolidated operating revenues of US$ 828.2 million for the nine months of 2006 and Comstar UTS' consolidated assets totalled US$ 2.8 billion at September 30, 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.