Comstar-UTS Acquires Golden Line.

MOSCOW -- "COMSTAR - United TeleSystems" JSC ("Comstar UTS") (LSE: CMST), the leading combined telecommunications operator in Russia and CIS, today announced the acquisition of a 100% stake in Golden Line, a wholly owned subsidiary of Comstar Direct, for a total cash consideration of US$10.2 million from Comstar Direct. The transaction was approved by the Board of Directors on April 19, 2007.

Golden Line is a provider of dedicated leased access lines in Moscow to corporate clients using its fiber optic network and MGTS' switches. The company offers transportation backbone inclusive of 48 core network nodes for dedicated services to private networks of corporate users. Golden Line leases circuits to over 100 telecommunication providers and to carriers in order to connect remote subscribers. The company was established in 1993 as a 50/50 joint venture between Alcatel (previously, Newbridge Networks) and MGTS. In September 2002, Sistema acquired a 50% stake from Alcatel. In November 2002, 100% stake in Golden Line was transferred to Comstar Direct (previously, MTU-Intel).

Eric Franke, President and Chief Executive Officer of Comstar UTS, commented: "The acquisition of a 100% stake in Golden Line is in line with our previously stated intention to streamline our operations into an integrated combined telecommunications company. We see a lot of synergies between Golden Line and Comstar UTS in Moscow as they both provide a full suite of telecom solutions to our corporate clients and operators and have the same business model. As we have stated previously, Golden Line will be integrated into our Group operations in 2007".

Nikolay Tokarev, Chief Financial Officer of Comstar UTS, added: "We expect the full consolidation of Golden Line in Comstar UTS' results to have a positive impact on the Group's bottom line as a result of the elimination of a minority interest".

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$ 1.12 billion for the twelve months ended December 31, 2006, and had consolidated assets totalling US$ 3.54 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