Moscow, Russia - January 23, 2006 - JSC "COMSTAR - United TeleSystems" ("Comstar UTS"), the fixed-line telecommunications subsidiary of Sistema (LSE: SSA), today announced the preliminary price range for its initial public offering.  The indicative price range has been set at between US$ 6.50 and US$ 8.00 per share and per Global Depositary Receipt ("GDR").  

The offering comprises 139,000,000 newly issued ordinary shares in the form of GDRs, with one GDR representing one ordinary share, and 7,500,000 ordinary shares.  The 7,500,000 ordinary shares are being sold by ECU GEST HOLDING S.A., which is a 99% owned subsidiary of Sistema.

The GDRs are being offered to international institutional investors outside the Russian Federation, and the ordinary shares are being offered to investors in the Russian Federation and to international institutional investors outside the United States.

Comstar UTS has now also received approval from the Russian Federal Service for Financial Markets for the new share issue and for the listing of the shares in the form of GDRs.  Comstar UTS has applied to the UK Listing Authority for its GDRs to be admitted to trading on the London Stock Exchange. 

Comstar UTS is a leading provider of integrated communications services in Moscow and the Moscow region in terms of revenues and subscribers and also offers communications services in other regions of Russia and the Commonwealth of Independent States.  Comstar UTS had over 4 million subscribers at September 30, 2005.  Comstar UTS offers voice, data and Internet, pay-TV and various value-added services to corporate, operator and residential subscribers, using its alternative and traditional fixed-line networks.  Comstar UTS had combined operating revenues of US$ 636.8 million for the first nine months of 2005 and Comstar UTS' assets totalled US$ 1.56 billion at September 30, 2005.  Comstar UTS ordinary shares are listed on the Moscow Stock Exchange under the symbol "CMST".

Deutsche UFG, Goldman Sachs International and Renaissance Capital are acting as financial advisers and joint bookrunners to Comstar UTS for the combined Russian and international offering.