“COMSTAR – United TeleSystems” OJSC (“Comstar” or “the Group”) (LSE: CMST) today announced its unaudited consolidated US GAAP financial results for the three and six months ended June 30, 2007.

SECOND QUARTER HIGHLIGHTS

• Revenues up 32% year on year to US$ 379.2 million
• OIBDA[1] up 51% year on year to US$ 173.2 million and OIBDA margin of 46%
• Operating profit up 54% year on year to US$ 135.7 million and operating margin of 36%
• Net income before non-cash impact of revaluation of put and call option1 of US$ 39.2 million
• Cash flow from operations up 41% year on year to US$ 112.4 million
• 42% year on year growth in Moscow broadband Internet subscriber base to 426,400 customers
• 52% of MGTS residential subscribers on unlimited tariff plan as at end of period

[1] Here and below, please see Attachment A to this statement for a full definition of OIBDA and a reconciliation of Net Income before the non-cash impact of the revaluation of the put and call option.