Moscow, Russia – October 28, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 83 Russian cities, with a presence in Ukraine and Armenia, today announces the decision to reorganize its wholly-owned subsidiary CJSC Comstar-Regions (“Comstar-Regions”), through the integration of sixteen regional incorporated subsidiaries into the company.

The sixteen subsidiaries provide telecommunications services to both corporate and individual clients in the regions, and comprise CJSC Astro-Tel and CJSC IMA Trunk Media in Astrakhan; CJSC Comtel-Kemerovo in Kemerovo; CJSC RusLan-TV in Moscow; CJSC Simbirsk CTV in Ulyanovsk; CJSC SALLAK Group of Companies in Krasnodar; CJSC Comtel-Vologda in Vologda; CJSC Comtel-Taganrog in Taganrog; CJSC Network TV and Telesat in Nizhny Tagil; CJSC Elecom-Service in Voronezh; CJSC Electronica in Balakovo; CJSC Inter-TV Cable Systems and Ivanovo Cable Systems in Ivanovo; CJSC TVK-Kursk in Kursk; and CJSC Penza Telecommunications in Penza.  

Viktor Koresh, Vice President for Regional Development of COMSTAR-UTS and General Director of CJSC Comstar-Regions, commented: “We continue our ongoing work on the gradual reorganization of our regional assets under the Comstar-Regions umbrella. Our goal is to optimize our company structure and to increase the transparency of our regional assets through the integration of all of our regional assets into Comstar-Regions.”

Comstar-Regions was created through the merger of Comstar’s seven largest regional subsidiaries in August 2009. Comstar-Regions is a 100% owned subsidiary of the Group and manages the consolidation and operation of Comstar’s regional assets. In accordance with the approved management structure, Comstar-Regions comprises branches in the Central, North-West, Southern, Volga, Ural and Siberian Federal Districts, with corresponding centres in Moscow, St. Petersburg, Rostov-on-Don, Saratov, Yekaterinburg and Tyumen. Within the restructuring programme, Comstar’s regional operators are being consolidated into Comstar-Regions.