Comstar UTS Annual General Meeting.

MOSCOW -- "COMSTAR - United TeleSystems" ("Comstar UTS") (LSE:CMST), the leading provider of integrated communications services in Moscow, today announced the results of its Annual General Meeting of shareholders (AGM) held in Moscow on June 30, 2006. The shareholders approved the election of the members of the Board of Directors as follows:

--Sergey Bayda - Deputy Chief Executive Officer for Strategy, Sistema Telecom

--Andre Bliznyuk - Head of Capital Markets, Sistema

--Alexey Goltsov - Chief Executive Officer, MGTS 

--Georgy Kikvadze - Director for Investments, Sistema Telecom

--Vladimir Lagutin - Member of the Board of Directors of Sistema and Sistema Telecom

--Semyon Rabovsky - Chief Executive Officer, Comstar UTS

--Sergey Shchebetov - Chief Executive Officer, Sistema Telecom

At a Board of Directors meeting following the AGM, Sergey Shchebetov, Chief Executive Officer of Sistema Telecom, was re-elected as Chairman of the Board of Directors of Comstar UTS.

The AGM also approved the payment of an annual dividend of approximately RUR62 million (approximately US$ 2.3 million as at June 30, 2006) for the twelve months ended December 31, 2005, to holders of the Company's outstanding ordinary shares as at the record date of May 15, 2006. The dividend, which amounts to a payment of RUR 0.14834 (US$0.00548 as at June 30, 2006) per ordinary share, is due to be paid by October 1, 2006.

The AGM also approved the Regulation of the Board of Directors, and procedures for the meetings of the Company's Board of Directors and the Annual General Meeting of shareholders.

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.