Moscow, Russia – June 1, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 82 Russian cities, today announced the appointment of Alexei Kaurov as Vice President for Economics and Finance with immediate effect. Mr. Kaurov previously held the position of Head of Corporate Finance Department for the Corporate Centre of Mobile Telesystems (“MTS”). Alexei Kaurov replaces Irina Matveev, who has served as Chief Financial Officer since October 2007.

Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: “We are delighted to welcome Alexei Kaurov to our senior management team. His successful track record and extensive experience in the field of corporate finance will be a valuable asset to the Group’s ongoing integration with MTS.”

Alexei Kaurov was born in 1971 in Moscow. Previously, from 1997 to 2001, Alexei served as the Director for Direct Investment of the Moscow branch of NCH Advisors. From 2001 to 2003, he was Head of Financial Planning and Reporting and Head of the Corporate Finance Department in Vimpelcom.  Following that, Mr. Kaurov became Head of the Corporate Finance Department at Sistema and later Head of the Corporate Finance Department at MTS in 2007. Alexei Kaurov graduated from Moscow State Institute of International Relations (MGIMO) in 1993, and holds an MBA from George Washington University School of Business.