Moscow, Russia – June 26, 2009 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 69 Russian cities, today announced the decisions made at the Annual General Meeting of Shareholders (“AGM”) of its 55.73% owned subsidiary, Moscow City Telephone Network (“MGTS”), on June 26, 2009.

The AGM approved Annual Report of MGTS for 2008 and annual financial statements of MGTS for 2008, including the Income Statement (P&L Accounts) of MGTS for 2008; considered the issues related to the distribution of the profit and loss of MGTS upon the results of the fiscal year 2008; and elected the new Audit Commission. The AGM also approved the new edition of the Regulation on the MGTS’ Board of Directors. Deloitte & Touch CIS was appointed as independent auditor for 2009.

The AGM voted against the recommendation of the MGTS’ Board of Directors to pay an annual dividend for the twelve months ended December 31, 2008, by a majority vote (approximately 98%).

In addition, the shareholders approved the election of the members of the Board of Directors as follows:

1. Kirill Andreychenko – Vice President for Corporate Governance and Legal Issues, Comstar UTS. Mr. Andreychenko was nominated by Comstar UTS.

2. Mikhail Bedin – Director of Department for Subscriber Access Network Operation, Comstar UTS. Mr. Bedin was nominated by Comstar UTS.

3. Maxim Chernov – Director for Tariff Policy and Promotion of Services to Corporate Subscribers, Comstar UTS. Mr. Chernov was nominated by Comstar UTS.

4. Alexey Goncharuk – First Vice President, Comstar UTS. Mr. Goncharuk was nominated by Comstar UTS.

5. Dmitry Karmanov – Vice President for HR Management, Comstar UTS. Mr. Karmanov was nominated by Comstar UTS.

6. Irina Matveeva – Vice President for Economics and Finance, CFO, Comstar UTS. Mrs. Matveeva was nominated by Comstar UTS.

7. Andrey Morozov – Head of Legal Department, Moscow representative office of NCH Advisors Inc. Mr. Morozov was nominated by Lindsell Enterprises Limited, Reardon Enterprises Limited, Pruett Enterprises Limited, Broadhurst Investments Limited, Postland Enterprises Limited.

8. Oleg Mukovozov – Director of Corporate Governance Department, Comstar UTS. Mr. Mukovozov was nominated by Comstar UTS.

9. Sergey Pridantsev – President and Chief Executive Officer of Comstar UTS. Mr. Pridantsev was nominated by Comstar UTS.

10. Alexander Provotorov – First Deputy General Director, Svyazinvest. Mr. Provotorov was nominated by Svyazinvest.

11. Victor Savchenko – Deputy General Director, Svyazinvest. Mr. Savchenko was nominated by Svyazinvest.

12. Evgeny Yurchenko – General Director, Svyazinvest. Mr. Yurchenko was nominated by Svyazinvest.

At the statutory Board meeting following the AGM, the MGTS Board of Directors appointed Mr. Sergey Pridantsev as Chairman.