Moscow, Russia – January 11, 2011 – “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 84 Russian cities, with a presence in Ukraine and Armenia, today announces that it has completed the integration of ten incorporated subsidiaries into its wholly-owned subsidiary CJSC Comstar-Regions (“Comstar-Regions”).

The ten subsidiaries provide services to both corporate and individual clients and comprise CJSC Tversvyazinform (Tver), CJSC Regional Cable Networks (Moscow), CJSC ESTA TELECOM (Kaluga), CJSC Sandy Info (Nizhny Novgorod), MARK TV (Izhevsk), CJSC TSN (Nizhny Novgorod), CJSC NPO Vidis (Dzerzhinsk), CJSC Trank (Astrakhan), CJSC TV-Maidan Television Company (Rostov-on-Don), CJSC Infotek (Yekaterinburg).

The integration of the ten companies has been done in line with the Group’s restructuring programme to consolidate its regional fixed-line assets into Comstar-Regions.