1 July 2008, Moscow. Comstar – United Telesystems (JSC Comstar-UTS, LSE: CMST), the leading supplier of integrated telecom services in Russia and the CIS announced to have completed the reorganization of CJSC Sochitelecomservice (city of Sochi) and CJSC PortTelecom (Moscow region) in the form of merger into the parent - JSC Comstar-UTS.
   
This merger of the 100% owned subsidiaries  Sochitelecomservice and   PortTelecom into the JSC Comstar-UTS has been approved by a resolution of the extraordinary general meeting of shareholders of JSC Comstar-UTS held on 24 December 2007.

Presently, the telecommunication services in the city of Sochi are being rendered by the South Branch of JSC Comstar-UTS, while the Moscow suburbs are served by the Moscow Region Branch. Besides, in the Moscow region JSC Comstar-UTS owns a 100% of the equity interest in LLC Unitel, which subsequently will be merged into JSC Comstar-UTS as well.

In future, all the Russian subsidiaries of JSC Comstar-UTS Group are planned to merge with JSC Comstar-UTS and turn into branches operating in respective federal districts of Russia.