17 January 2008, Moscow. JSC COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the major provider of integrated telecommunication services in Russia and the CIS, announces the formation of a regularly standing advisory collegial body, the Science/Technology Council (STC).

The function of the Council is to shape common science/technology policy, implement the advanced technology expertise and achievements of the national and international science in the IT and telecommunications field across COMSTAR-UTS Group. The STC coordinates the plans of technology evolution and the Company’s own know-how solutions seeking to upgrade the Group companies’ networks, enhance their telecommunications infrastructure, expand the suite and quality of service.

The STC is comprised of the representatives from JSC COMSTAR-UTS, OJSC MGTS, CJSC COMSTAR-Direct and Sistema JSFC. Representatives from Intellect Telecom will also be engaged in activities of the Council. It is planned that experts from FPUE CNIIS, FPUE LONIIS, FRUE NIIR and other industry’s science/technology and design/engineering organizations will be invited for the Council meetings, if necessary, to discuss special matters, including formulation of efficient engineering solutions to the socially significant and government objectives.

Aleksandr Kirillov, Vice-president for Technologies, JSC COMSTAR-UTS, has been elected the Chairman of the Science/Technology Council. According to Mr. Kirillov: “We have to keep abreast with the trends globally to operate successfully on the hi-tech market. COMSTAR-UTS’ activities are founded on the innovative technology solutions, and the need for formation of a body to brainstorm and formulate expert advice on the technical policy has been long standing. We will be able to shape a consolidated technology strategy across the Group in a more effective manner through the STC on which the experts from several companies sit and in the activities of which independent experts will be engaged.”