Moscow, Russia – August 26, 2008 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Company”) (LSE: CMST), the leading integrated telecommunications operator in Russia and the CIS, today announced that Access Telecommunications Coöperatief U.A. (“Access”, previously known as 2711 Centerville Coöperatief U.A.) has initiated the process of exercising its put option to sell 46,232,000 Comstar shares to MGTS Finance S.A. at the weighted average closing price of the Comstar Global Depositary Receipt on the London Stock Exchange for the 90 trading day period up to and including the trading day prior to the date of exercise of the Put Option (“Option Interest”). The Option Interest represents 11.06% of the total number of issued and outstanding Comstar shares. The transaction is expected to be completed, by means of the transfer of rights and payment, within 60 business days from August 25, 2008.

The call and put option was originally issued by Comstar subsidiary MGTS Finance S.A. to 2711 Centerville Cooperatief U.A. in part payment for the acquisition of a 25% + 1 share stake in Telecommunication Investment Joint Stock Company ‘Svyazinvest’ in December 2006. The transfer of rights and receipt of payment in relation to the exercising of the call option by Access was completed on December 18, 2007. Access thereby became a shareholder in Comstar by acquiring 46,232,000 Comstar shares from Comstar subsidiary MGTS Finance S.A. for US$ 6.97 per share and a total cash consideration of US$ 322.2 million.

Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: “Comstar has been considering the possible actions related to the put option since the moment of exercising the call option. We are fully prepared for the transaction and planning to fulfill our obligations using our own funds.”