Comstar and Sistema Representatives Elected to Board of Directors of Svyazinvest.

MOSCOW -- "COMSTAR - United TeleSystems" JSC ("Comstar") (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS, today announced that, following the Extraordinary General Meeting of Shareholders of the Telecommunication Investment Joint Stock Company (Svyazinvest) on April 5, 2007, two representatives of Comstar UTS and Sistema were elected to the Board of Directors of Svyazinvest. The appointments of Sergei Shchebetov, Chairman of the Board of Directors of Comstar UTS and General Director of ZAO Sistema Telecom, and Anton Abugov, First Vice President, Head of Strategy and Development Complex at Sistema, followed the acquisition of a 25% stake plus one share in Svyazinvest by Comstar UTS in December 2006.

Sergei Shchebetov was born in 1966. Mr. Shchebetov has served as the General Director of ZAO Sistema Telecom since January 2006. He is also the Chairman of the Boards of Directors of Mobile TeleSystems and Sky Link. From April 2005 to December 2005, he held the position of the First Deputy General Director of Sistema Telecom. Previously, from June 2001 he served as the Head of the Corporate Development Department of Sistema. From 1999 to 2001, Mr. Shchebetov was the Development Director of Integrum- Techno, an IT company, and, from 1997 to 1999, he served as the Vice President of Corporate Finance Department of ATON Capital Group, an investment company. From 1994 to 1996, Mr. Shchebetov worked as a consultant in McKinsey & Company based in Moscow. Mr. Shchebetov graduated from the Novosibirsk University with a degree in Quantum Optics. He holds MBA from Stanford University.

Anton Abugov was born in 1976. From 2003 to 2006, Mr. Abugov was Managing Director of AKB Rosbank, in charge of its Corporate Finance Department. Prior to joining Rosbank, he was a partner in Eurasia Capital Partners, where he was responsible for investment projects in Eastern European telecoms and Russian petrochemical businesses. From 1997 to 2006, Mr. Abugov served as a strategic adviser to TAIF Group of Companies. From 1995 to 2002, he worked as the Head of Corporate Finance of UFG (United Financial Group), an investment company. In 1999, he served as an adviser to RAO UES. Mr. Abugov graduated from the Academy of National Economy under the Government of the Russian Federation.

Sergei Shchebetov, Chairman of the Board of Directors of Comstar UTS commented: "We are delighted that the representatives of Comstar UTS and Sistema have now joined the Svyazinvest Board of Directors. We look forward to a fruitful cooperation at Board level in order to represent the rights of minority shareholders. We will bring our wide ranging experience to bear by assisting in the further development of the Company's corporate governance, transparency levels and broader business processes, in order to increase efficiency and optimize Svyazinvest's considerable potential."

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, and CIS and Eastern European countries. Comstar UTS had 3.6 million traditional fixed-line subscribers, over 500,000 alternative operator segment subscribers in Moscow, and almost 100,000 alternative segment subscribers in the Russian regions outside Moscow, as at December 31, 2006. Comstar UTS reported operating revenues of US$ 828 million for the nine months ended September 30, 2006, and had consolidated assets totalling US$ 2.8 billion as at the end of the period. Comstar UTS 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.