Moscow, Russia – April 16, 2007- Comstar Direct, the leading provider of broadband Internet access in Moscow under “STREAM” brand and a subsidiary of “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), today announced that it has added the 400,000th subscriber to its network.

Irina Terentyeva, a fitness club instructor, signed up for “FEST” tariff plan with unlimited internet access (320 Kbit/s for US$ 15 per month) in the first combined sales and service centre of Comstar UTS.

Ms. Terentyeva was awarded the computer «IRBIS X95» by representatives of Comstar Direct and K-Sistems, the PC manufacturer, in a joint promotion campaign, as well as an IPTV-compatible modem with a prepaid card.

Comstar Direct has delivered robust growth in broadband Internet subscribers since the launch of its service under “STREAM” brand in February 2004. It was first among all operators in the Moscow market to reach 400,000 subscribers target. Comstar Direct has increased its subscriber base by 11% since the end of 2006.

The unique and easy access to broadband internet provided by the unified backbone of MGTS and Comstar Direct is the main factor which contributed to the success of its offering. Comstar Direct has a broad selection of tariff plans in a wide range of pricing and connection speed options for all market segments. It offers a number of add-on services such as VOD, IPTV and gaming in addition to Internet access.

Vladimir Malyavin, General Director of Comstar Direct, commented: “Comstar Direct has delivered robust growth in broadband Internet subscribers since the launch of its service under “STREAM” brand in February 2004. It was the first among all operators in the Moscow market to reach 400,000 subscribers target. The unique offer range and the reliability of service have contributed to our success. We are committed to continuous improvement of our service and product range through the launch of new add-on services and network upgrades in order to meet our customers’ requirements and high standards of service in Comstar UTS. I would like to thank each of our 400,000 subscribers for helping us to become the first operator in Russia to reach this milestone.”