Moscow, Russia – August 03, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 83 Russian cities, today announced that Standard & Poor’s Ratings Services has revised its outlook both for Comstar, and its subsidiary Moscow City Telephone Network, (“MGTS”) from Stable to Positive.

Standard & Poor’s Rating Services has also confirmed its “BB” long term corporate credit rating and its “ruAA” Russia national rating for both Comstar and MGTS.

Standard & Poor’s report notes that the positive action on Comstar and MGTS reflects an upgrade in the rating of Comstar’s parent company Mobile TeleSystems (“MTS”), which controls 61.97% of Comstar’s shares.

Standard & Poor’s report states that: “The positive outlook for the credit rating has been aided by the expected cost and profit synergies of the integrated operator. The signing of the agreement to sell the 25% stake in Svyazinvest, currently controlled by Comstar, to Rostelecom has also influenced the ratings positively. Going forward, all of the S&P credit ratings for the Comstar group of companies will reflect the ratings and outlook for mother company MTS.”

“BB” and “ruAA” Ratings

Standard & Poor’s long-term credit rating “BB” confirms that an issuer is less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions. Credit rating “ruAA” reflects an issuer’s very strong capacity to meet financial commitments compared to other Russian issuers.

Further information on Comstar’s and MGTSs ratings is available on https://www.standardandpoors.com/