Moscow, Russia – January 15, 2008 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 66 Russian cities, today announced that the annual interest rate on its 5-year RUR 26 billion ruble-denominated credit facility, which was provided by the Savings Bank of the Russian Federation (Sberbank), has increased from 9.50% to 13.35% with effect from January 1, 2009.

Under the terms of the credit facility, Sberbank has the unilateral right to increase the interest rate in conjunction with, but not exclusively, base interest rate increases made by the Central Bank of Russia. In the event that the creditor unilaterally increases the interest rate, the new rate is applied thirty days from the date of sending a notification by Sberbank, unless a later date is specified. Previously, the new rate was applied sixty days from the notification sending date.