Moscow, Russia – September 23, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 83 Russian cities, today announces the results of its Extraordinary General Meeting of shareholders (“EGM”), which was held on September 22, 2010.

The EGM approved the supplementary agreement to the sale and purchase agreement - involving the sale of Comstar’s stake in Svyazinvest Telecommunication Investment Joint Stock Company (“Svyazinvest”) that was entered into between Comstar and OJSC Rostelecom (“Rostelecom”) – and a series of related transactions to reflect the interdependence between the sale of shares of Svyazinvest and closing of the share swap agreement of Public Joint Stock Company Moscow City Telephone Network (“MGTS”) and SkyLink CJSC (“SkyLink”), entered into between Svyazinvest and Sistema-Inventure CJSC (“Sistema-Inventure”), a subsidiary of JSFC Sistema.

In May 2010, Comstar, its subsidiary MGTS Finance S.A. and Rostelecom had entered into agreements involving the sale of the 25%+1^[1]share of Svyazinvest to Rostelecom for RUB 26 billion. The closing of the transaction is subject to a number of conditions, one of which is entering into the transaction to swap Svyazinvest’s stake in MGTS for Sistema-Inventure’s stake in SkyLink.

^[1]17.31% is owned by Comstar directly with another 7.69% owned by MGTS Finance S.A., which is controlled by Comstar.