Moscow, Russia – September 18, 2009 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 69 Russian cities, today announced that the Board of Directors (the “Board”) has approved a change in the repayment terms for the 5-year RUR 26 billion ruble-denominated credit facility, which was provided by the Savings Bank of the Russian Federation (Sberbank) in June 2007.

The repayments, which amount to RUR 2.2 billion per quarter, were initially scheduled to start on September 27, 2009. The first two repayment installments have been postponed until March 27, 2010 and June 27, 2010 respectively, in line with an agreement reached between Comstar and Sberbank with regards to the debt restructuring. The rescheduled repayment plan does not involve an extension of the credit’s overall maturity time or an increase in the annual interest rate on the facility. Funds for the repayment of the first two tranches of the credit facility will be placed in Sberbank.

In addition, based on the Group’s operating results for the first six months of 2009, the Comstar Board of Directors has approved an increase in the maximum amount of capital expenditure for 2009 from 6% to 8% of the Group’s revenues. As previously, the investments will be used to connect new subscribers and implement a selective modernization of the Group’s regional networks.

The Board has also set the date for Comstar’s Extraordinary General Meeting of Shareholders (“EGM”) for December 4, 2009.  The Board has recommended the EGM to elect new members to the Board of Directors.

Shareholders registered as at the record date of September 17, 2009 will be eligible to participate and vote at the meeting. The EGM will take place at 11.00 am Moscow time at the following address: 12/3 Petrovsky Boulevard, Moscow, 127051, Russia.

Further information with regards to the EGM and other related issues will be available on the Company’s website https://www.comstar-uts.com/en/for_investors/corporative_management/.