Moscow, Russia – September 4, 2007 - “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS,  today announced that, following the Extraordinary General Meeting of its Shareholders on September 4, 2007, the new Board of Directors of the Company was elected.  

The shareholders approved the new Board of Directors as follows:

1. Anton Abugov, First Vice President, Head of Strategy and Development of Sistema
2. Anatoly Akimenko, Head of Department, Vice President of Access Industries (Eurasia)
3. Vladislav Vasin, Director of the Department of Technological Development of Sistema
4. Dietmar Kuhnt, Member of Supervisory Boards of Allianz-Versicherungs-AG, BDO Deutsche Warentreuhand AG, Dresdner Bank AG, GEA Group AG, Hapag Lloyd AG, Hochtief AG and TUI AG; Independent Director of Comstar UTS
5. Shamil Kurmashov, Deputy Director of Finance and Investments Division, Director of Investments Division of Sistema
6. Sergey Pridantsev, President and CEO of Comstar UTS
7. Yngve Redling, Chairman of the Swedish-Russian bilateral working group for Information Technology, Independent Director of Comstar UTS
8. Vladimir Uvakin, Head of Corporate Property Department of Sistema
9. Dmitry Ustinov, Head of Financial Department of Sistema

Anton Abugov was elected as Chairman of Comstar’s Board of Directors.

Mr. Abugov commented: “Comstar UTS is one of Sistema’s key telecommunications assets and we are fully committed to its further operational development and exploring all opportunities for increasing its competitive advantages. The newly elected Board of Directors will focus on coordinating management activities aimed at fulfilling Comstar’s strategic objectives, including increasing its operational efficiency and generating additional shareholder value.”