Moscow, Russia – April 23, 2007 – “COMSTAR – United TeleSystems” (“Comstar” or “the Group”) (LSE: CMST), the leading combined telecommunications operator in Russia and CIS, and Moscow City Telephone Network (MGTS), announced today that they have started the construction of Wi-Fi coin-box telephones network in Moscow. Under the terms of agreement, 200 coin-box telephones will be integrated in Comstar’s unified network, providing customers with access to a wireless Wi-Fi connection. The Wi-Fi coin-box telephones will be installed at train stations, airports and hotels, which are currently not provided with Comstar’s Wi-Fi connection. Customers will be able to use pre-paid cards, SMS-authorisations and MGTS phone cards to access the internet.

Eric Franke, President and Chief Executive Officer, commented: “The launch of Wi-Fi coin-box telephones is the next step in the implementation of our strategy to develop the services of Comstar’s unified Wi-Fi network. The current project is of particular importance for us as it will help to address growing demand from Comstar-Direct’s customers for wireless connection. Wi-Fi connection will be available to a significant number of clients in public places with a high demand for this type of solution and with no existing presence of Comstar UTS. We expect to double the number of hot spots ever year in Moscow”.