Moscow, Russia – November 23, 2005 – Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced the completion of the consolidation of its fixed-line telecommunications operators under Comstar United TeleSystems.

Comstar UTS now owns majority stakes in Sistema’s fixed-line businesses, including 99% of MTU-Inform, 100% of Telmos, 100% of MTU-Intel (including 100% of Golden Line) and 55.62% of MGTS. Comstar UTS paid for these acquisitions in the form of 255,919,860 newly issued shares, with Sistema acquiring 152,241,100 shares, ZAO UTS – 57,446,760 shares, ZAO UTS MGTS – 46,232,000 shares.

The shareholder structure of Comstar UTS post-consolidations is as follows: Sistema and its 100%-owned subsidiaries own 79.3% (Sistema – 54.58%, ZAO UTS – 20.59%, ECU Gest Holding – 4.13%), and MGTS and its 100%-owned subsidiary own 20.7% (ZAO UTS MGTS – 16.57%, MGTS – 4.13%).