News

Moscow, Russia – July 13, 2010 – “COMSTAR – United TeleSystems” OJSC (“Comstar” – LSE: CMST), the largest integrated fixed – line telecommunications provider in Moscow and 82 Russian cities, today announced that it has received today from Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, the MTS Voluntary Tender Offer (“VTO”) to acquire up to 37,614,678 Comstar ordinary shares (representing 9.0% of Comstar’s issued share capital, and including shares underlying Comstar Global Depositary Receipts (“GDR’s”) that MTS does not already own for RUR 220.0 per Comstar share. The launch of the VTO follows the announcement on June 25, 2010 that the Boards of Directors of MTS and Comstar had approved and recommended the merger of MTS and Comstar. The VTO documentation was then filed by MTS with the Federal Service for Financial Markets (“FSFM”), which has now completed its statutory review. MTS currently owns 61.97% of Comstar, or 64.03% when excluding treasury shares, and consolidates Comstar in its financial results.

July 12, 2010, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication solutions in Russia and the CIS, announces the completion of work to migrate their own internet users’ traffic to their own fiber optic transport communication network owned by MTS Group (OJSC Mobile TeleSystems), NYSE: MBT) in Moscow-Kiev direction.

July 7, 2010, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication solutions in Russia and the CIS, discloses results of its performance on the Moscow commercial real estate market for the 2nd quarter and 1st half year of 2010.

July 5, 2010, Moscow. COMSTAR – United TeleSystems (OJSC COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecom services in Russia and CIS, announces that CJSC COMSTAR-Regions (100% affiliate of OJSC COMSTAR-UTS) has launched “Bonus+” federal loyalty program for subscribers of cable television (CTV) and broadband Internet access (BIA) among natural persons in all cities of the company’s presence*.

Moscow, Russia – June 25, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 82 Russian cities, announces that at a meeting held on June 25, 2010, its Board of Directors approved the purchase and sale agreement between OAO Rostelecom (“Rostelecom” - RTS and MICEX: RTKM, RTKMP; OTCQX: ROSYY) and Comstar, according to which Rostelecom will purchase the common shares of OAO Svyazinvest, which account for the 17.31% of its equity, for RUB 18 billion.

Moscow, Russian Federation — The Boards of Directors of Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, and COMSTAR – United TeleSystems JSC (“Comstar” - LSE: CMST), a leading supplier of integrated telecommunication solutions in Russia and the CIS, announce that they have approved and recommend the merger of MTS and Comstar. MTS currently owns 61.97% of Comstar (64.03% excluding treasury shares) and consolidates Comstar in its financial results. As a result of the statutory merger (“prisoedinenie” under Russian law), Comstar will be subsumed into MTS and will cease to exist as a separate legal entity.

Moscow, Russia – June 24, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Company”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 82 Russian cities, today announced that it has increased its stake in the share capital of JSC Regional Technical Centre (“RTC”) to 96.24% of the common shares, from the previous level of 86.21%. RTC is the leading alternative regional fixed-line telecommunications operator in the Siberia region and is part of the Comstar-UTS Group of companies.