May 11, 2010, Moscow: Today, COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecom solutions in Russia and the CIS, member of MTS Group, and Mobile TeleSystems (MTS, NYSE: MBT), the leading telecom operator in Russia and the CIS, announced the launch of COMSTAR-UTS products and services rebranding to the MTS brand. By the end of 2011, MTS Group (which includes MTS, COMSTAR-UTS and MGTS) will have only two brands on the telecom market in Russia: MTS and MGTS.

During the integration process the COMSTAR-UTS brands (COMSTAR and STREAM) will be gradually replaced by the MTS brand for all user segments in Moscow and regions. To ensure a smooth transition, there will be a period when mass market products formerly promoted under the STREAM brand will be offered as MTS STREAM products. The STREAM brand will have been completely replaced by the MTS brand by the end of 2011.

So, MTS Group will provide the whole range of communication services under the MTS brand all over the Russia: mobile and fixed communication, mobile and fixed broadband, pay-TV, Wi-Fi.

These changes will not affect the MGTS brand (the company will continue to provide telecom services in Moscow under its own brand) and, initially, the COMSTAR-WiMAX products.

As part of rebranding, a common communication style and unified service and sales systems for all MTS and COMSTAR-UTS products will be developed. It is expected that by the end of 2010 a significant part of STREAM and COMSTAR retail stores will have taken the MTS brand and MTS stores will have offered the whole range of COMSTAR-UTS products for private users.

An important stage of the companies’ integration will be including of fixed Internet subscribers into the MTS Bonus program, i.e. the program will become available to the users of STREAM products and services.

“The MTS brand is globally recognized as the most expensive Russian brand, and now we have a unique opportunity to further develop and strengthen it in all market segments where the Group operates. It is important to note that with COMSTAR-UTS services included in the MTS product range customers of MTS Group will get significant benefits: the full range of single-branded communication services, an access to innovative convergent products, the best user experience and an opportunity to optimize the budget,” Mikhail Gerchuk, MTS Commercial Vice President, says.

“For COMSTAR-UTS products and services we have chosen an “organic” rebranding scenario when one brand will be gradually replaced by another. This scenario also implies that any change in the brand will be supported by the introduction of new services or products and discounting: the subscriber should see the advantages he/she will get due to the transition to the new brand. Today, we are launching the first convergent offerings which provide service terms and conditions beneficial for our subscribers and combine the services of both operators,” Maxim Chernov, COMSTAR-UTS Marketing Director, says. “COMSTAR-UTS will get certain benefits from the rebranding: MTS is one of the most popular Russian brands which makes it possible to speed up the roll-out of fixed communication, broadband and TV services, to expand the subscriber base and increase user loyalty.