Moscow, Russia – August 16, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 83 Russian cities, today announced that the Board of Directors (the “Board”) have set the date for Comstar’s Extraordinary General Meeting of Shareholders (“EGM”) for September 22, 2010. The EGM will be convened and votes cast remotely via proxy. Shareholders registered at the record date of August 13, 2010, will be eligible to participate and vote at the meeting.

The proposed agenda of the EGM includes the approval of potential direct or indirect disposals of Comstar-UTS assets which equal to or exceed 10% of the Group’s total assets as at the latest reporting date. The Board proposed to the EGM to consider the amendments to the agreement with Rostelecom and a series of inter-related deals, in order to reflect the inter-relation between the sale of Comstar’s stake in Svyazinvest and the execution of the share swap between Svyazinvest and Sistema-Inventure to exchange Svyazinvest’s 23.3% stake in MGTS for Sistema-Inventure’s  stake in SkyLink.

In May 2010, Comstar-UTS and its subsidiary MGTS Finance SA entered into the agreements with Rostelecom for the sale and purchase of 25% plus one share of Svyazinvest for RUB 26 billion. One of the conditions precedent to the transaction is for Sistema-Inventure to exchange its stake in SkyLink for Svyazinvest’s 23.3% stake in MGTS.

Further information with regard to the EGM and other related issues will be available on the Company’s web site https://www.comstar-uts.ru/.