August 23, 2010, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), a leading provider of integrated telecommunication services in Russia and CIS, announces that on August 15, 2010 COMSTAR-Regions (100% subsidiary of COMSTAR-UTS) launched a federal price plan, Home Internet MTS STREAM 5 Stars, for telecom service provision on a discount basis.

Subscribers may now subscribe to 5 Stars tariff offer for broadband and Double Play services (Internet + cable TV) in 52 cities of Russia*. 5 Stars means the following 5 discounted constituents of the offer: free connection; 6 months of Internet access with a double data rate at an initial price; 6 months of cable TV at a special price, i.e. 123 rubles per month (taxes included); free use of Internet and TV, 1 month each, provided a 2 month pre-payment for these services has been made.

The subscription option for special tariff is valid from August 15 to November 15, 2010. The tariff is valid for 6 months from the date (month) of the user subscription with an automatic migration to one of the standard (region dependent) unlimited price plans or to any other tariff at the subscriber choice. Internet access rate with 5 Stars vary from one city to another, ranging from 512 Kbps to 24 Mbps with subscription fee starting from 190 rubles per month.

“5 Stars is being launched within the framework of COMSTAR-UTS and MTS integration to produce a single customer interaction platform. The combination of MTS and COMSTAR benefits allows us to provide our subscribers with a full range of modern and affordable telecom services, deliver the best quality of service, as well as to strengthen our positions both in Russia and abroad. As a result of integration, COMSTAR gradually migrates to MTS brand which is well recognized on every market of the Group presence. This integration contributes to development of co-operative telecom services and makes it possible to promote them in a more effective manner,” Aleksandr Popovsky, Director of MTS Russia, says.

Dmitry Bagdasaryan, Deputy Director General and Commercial Director of COMSTAR-Regions, comments on this marketing campaign: “This is the first MTS-branded federal marketing campaign of COMSTAR in regions. We hope the strong brand known to millions of Russians for innovations and high quality telecom services will attract new users and enhance user loyalty. 5 Stars is a very beneficial offer for the wide range of audience, including the citizens of those regions where COMSTAR either upgraded the existing networks or rolled out the new and modern ones based on FTTB technology, for the subscribers to experience high quality of our services at a very high data rate.”

^{* The marketing campaign of COMSTAR-Regions is carried out in the following cities: Voronezh, Ryazan, Ivanovo, Shuya, Kaluga, Tver, Kursk, Orel, Tambov, Yaroslavl, Smolensk, Astrakhan, Sochi, Rostov-on-Don, Taganrog, Shakhty, Krasnodar, Severodvinsk, Veliky Novgorod, Mirny, Vologda, Nizhny Novgorod, Saratov, Balakovo, Izhevsk, Ulyanovsk, Penza, Yekaterinburg, Rezh, Nizhny Tagil, Kamensk-Uralsky, Perm, Novokuznetsk, Norilsk, Tymen, Tobolsk, Kemerovo, Orenburg, Surgut, Nefteyugansk, as well as in the cities of the Company presence in the Khanty-Mansi and Yamalo-Nenets Autonomous Regions.}