"COMSTAR - United TeleSystems" JSC ("Comstar") (LSE:CMST), the leading combined telecommunications operator in Russia and the CIS, today announced the decisions made at the Annual General Meeting of its shareholders ("AGM") on June 27, 2007.

The AGM approved an annual dividend of approximately RUR 62.7 million, or approximately US$ 2.4 million, for the twelve months ended December 31, 2006, to be paid to holders of Comstar's shares as at the record date of May 17, 2007. The dividend, which amounts to a payment of RUR 0.15 per ordinary share, or approximately US$ 0.0058 per Global Depositary Receipt ("GDR"), is due to be paid within 60 days of today's AGM approval.

In addition, the AGM approved amendments to Comstar's Charter; the bylaws regarding the Shareholder Meeting; the Board of Directors; the remuneration policy for the members of the Board of Directors; and the introduction of bylaws regarding the Management Board, President and Internal Audit Committee.