“COMSTAR – United TeleSystems” OJSC (“Comstar” or “the Group”) (LSE: CMST) today announced its unaudited consolidated US GAAP financial results for the third quarter and nine months ended September 30, 2007.

THIRD QUARTER HIGHLIGHTS

• Revenues up 28% year on year to US$ 372.2 million
• OIBDA[1] up 40% year on year to US$ 159.7 million and OIBDA margin of 43%
• Operating profit up 54% year on year to US$ 117.7 million and operating margin of 32%
• Net income of US$ 34.9 million before non-cash impact of revaluation of call and put option1
• Cash flow from operations up 23% year on year to US$ 105.2 million
• 44% year on year growth in Moscow broadband Internet subscriber base to 452,600 customers
• Launch of revised broadband strategy including broadband sales under MGTS brand and ‘Fibre to the Curb’ (FTTC) modernization of MGTS ‘last mile’ access
• 51% of MGTS residential subscribers on unlimited tariff plan; 22% on combined tariff plan; and 27% on per minute tariff plan, as at end of period
• Comstar-Moscow corporate subscriber ARPU up 12% year on year to US$ 570.0

NINE MONTH HIGHLIGHTS

• Revenues up 30% year on year to US$ 1,080.2 million
• OIBDA up 40% year on year to US$ 463.2 million and OIBDA margin of 43%
• Operating profit up 44% year on year to US$ 346.2 million and operating margin of 32%
• Net income of US$ 110.3 million before non-cash impact of revaluation of call and put option
• Cash flow from operations up 26% year on year to US$ 306.7 million

[1] Here and below, please see Attachment A to this statement for a full definition of OIBDA and a reconciliation of Net Income before the non-cash impact of the revaluation of the call and put option.