Moscow, Russia - March 14, 2006 - JSC "COMSTAR - United TeleSystems" ("Comstar UTS") (LSE: CMST), today announced that it has received notification from the Russian Federal Service for Financial Markets ("FSFM") that the FSFM has registered Comstar UTS's placement report regarding its additional issue of 139,000,000 ordinary shares with a nominal value of RUR 1.00 per share.  The shares were offered in the form of Global Depositary Receipts ("GDRs") to international institutional investors outside the Russian Federation in Comstar UTS's recently completed initial public offering ("the Offering"). Comstar UTS now has full and unrestricted access to the proceeds of the IPO.

Holders of the GDRs may now exercise the voting rights associated with the underlying shares and may withdraw the shares or other property on deposit with Deutsche Bank Trust Company Americas as the depositary bank in respect of the GDRs sold in the Offering.      

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 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 and on the London Stock Exchange under the symbol "CMST". Sistema (LSE: SSA) is the majority shareholder in Comstar UTS.