Moscow, Russia - January 29, 2007 - “COMSTAR – United TeleSystems” JSC (“Comstar UTS”) (LSE: CMST), the leading combined telecommunications operator in Russia and CIS, today announced that it has obtained licenses for IP Voice Data transmission, including WiMAX services, in the twenty largest regions in Russia. The licenses are valid until November 17, 2011. Further information on the range, scale and type of services to be launched will be provided in due course, along with the related investments to be made.

Eric Franke, Chief Executive Officer of Comstar UTS, commented: “This is a major step forward in our stated strategy of regional expansion. It will enable us to start up Greenfield operations in these new areas. The licenses give us the opportunity to provide the latest telecommunication solutions in priority regions and strengthen our overall competitive position in the market.”