Moscow, Russia – August 28, 2007 - “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS, today announced that, following the Annual General Meeting of Shareholders of the Telecommunication Investment Joint Stock Company (Svyazinvest) on August 28, 2007, two representatives of Comstar UTS and Sistema were elected to the Board of Directors of Svyazinvest.

Anton Abugov, First Vice President, Head of Strategy and Development at Sistema, and Alexander Gorbunov, Vice President for Strategy and Development at Comstar UTS, will represent the interests of Comstar UTS, owner of a 25% stake plus one share in Svyazinvest. Comstar UTS and Sistema retained two seats out of a total of nine on the Board of Directors of Svyazinvest.