Moscow, Russia – August 12, 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 its 69.93% subsidiary OJSC Moscow City Telephone Network (“MGTS”) has added 50 thousand new broadband Internet subscribers in Moscow during the first six months of 2010.

MGTS therefore had more than 300 thousand residential broadband Internet access households as at August 1, 2010, and increased its share of the Moscow residential broadband Internet market to 10.8%.

The growth in MTGS’ residential broadband internet subscriber base reflected the operator’s flexible tariff policy, the implementation of triple-play services, the convenient and easy to use payment system which allows users to access services on a single billing basis, as well as efficient, twenty four hours a day, customer support.

Sergey Ivanov, CEO of MGTS commented: “We are proud to have exceeded 300,000 Internet subscribers after six months of strong customer intake. It is an important milestone in our work as a multi-service communications operator which offers a broad range of contemporary telecommunication services. Our focus remains on the continued development of MGTS, and on expanding our presence on the broadband Internet access market by implementing innovative technologies, improving our service offering and offering our customers a continuously broadening range of options and solutions.”