Moscow, Russia – June 23, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST) notes today’s Russian press reports and acknowledges that it is in discussions with its majority shareholder, Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), regarding the potential consolidation by MTS of the outstanding minority shareholdings in Comstar. Certain terms outlined in the press reports do not reflect the terms currently being discussed. A decision regarding the consolidation could be taken at the next meeting of the Comstar Board of Directors, which is currently scheduled to take place on Friday June 25, 2010.

MTS is the majority shareholder in Comstar with a 61.97% ownership stake.