Moscow, Russia – December 24, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 84 Russian cities, with a presence in Ukraine and Armenia, today announces that Comstar-Regions, its wholly-owned subsidiary, has acquired 100% in Lanck Telecom LLC (“Lanck Telecom”), an alternative operator in Saint Petersburg, from a group of private investors. The acquisition allows MTS Group to strengthen its position in the Saint Petersburg corporate market.

The purchase price was RUB 547.4 million (US$ 17.9 million[1]). In addition, Lanck Telecom has net debt of RUB 227.6 million (US$ 7.4 million).

Lanck Telecom provides broadband Internet and fixed-line services with a focus on the corporate segment. The company services more than 1 million square meters of commercial real estate. The company currently has approximately 8,000 broadband Internet and 5,000 fixed-line subscribers.

Lanck Telecom’s financial results will be consolidated in MTS Group’s financial statements beginning from December 23, 2010.

[1] Using the Russian Central Bank exchange rate of 30.5922 RUB/USD as of December 24, 2010. The U.S. dollar amounts in the press release provided for reference.