April 2, 2009, Moscow. “COMSTAR – United TeleSystems” (JSC COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS announced taking a decision March 23, 2009 to re-organize in the form of a merger for seven 100% subsidiaries of OAO “COMSTAR-UTS”.

The re-organized regional business, “COMSTAR-UTS” shall shape up a single legal entity, ZAO “COMSTAR-Regions”, with its branches in Central, North-Western, Southern, Privolzhsky, Uralsky, and Siberian Regions. Re-organization process is scheduled for Q2 2009.

The subsidiaries to be involved in re-organization are ZAO “STREAM-TV” (manages several affiliated companies and their branches in various regions of Russia), ZAO “Digital Telephone Network South” (Rostov-on-Don), ZAO “Strategy” (Yekaterinburg, manages ZAO “Uralsky Telephone Company”), ZAO “Intersvyaz-Service”, ZAO “Inter-TV media” (both companies provide telecom services in Ryazan, being members of “Interlink” group), ZAO “Teleradiotekhnika" (Smolensk), ZAO “Sandy Service” (Nizhny Novgorod).

Presently, corporative procedures are being taken, necessary to merge the companies creating ZAO “COMSTAR-Regions", being a 100% affiliated society of OAO “COMSTAR-UTS”.

“COMSTAR-Regions” is being shaped up as a center to consolidate the assets within the framework of full-scale restructuring for regional business of the company Group.

It is anticipated that before the end of 2009 ZAO “COMSTAR-Regions shall be joined by other regional affiliated companies of “COMSTAR-UTS” and of “STREAM-TV” Group.

“COMSTAR-Regions” shall have its macro-regional network: on the basis of regional assets six enlarged affiliates shall be shaped up, in the following Federal Regions of RF (Central, North-Western, Southern, Privolzhsky, Uralsky, and Siberian).

“COMSTAR-UTS” consistently follows all the former objectives aimed at re-structuring of the business and creation of a single efficient operator company to provide telecom services on a nation-wide scale,” Sergey Pridantsev, President of “COMSTAR – United TeleSystems” Group of companies said. “This year we plan not just to create a 100% affiliated company responsible for the business development in six Federal Regions, but to ensure a smooth and seamless transition to a unified trade mark in all the regions of our presence, both for our customers, and for the affiliated companies”, Mr. Pridantsev added.