Moscow, Russia– March 2, 2009 – “COMSTAR – United TeleSystems” JSC (“COMSTAR” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 69 Russian cities, today announced that the tariff for the local connection services and line rental provided by COMSTAR’s 55.73% owned subsidiary, Moscow City Telephone Network (“MGTS”), was increased from March 1, 2009, following the approval by the regulator.

As at September 30, 2008 , MGTS had 3.6 million residential subscribers, 518 thousand independent corporate subscribers, and provided local connection services and line rental to 251 thousand state-funded organizations. As at September 30, 2008, 51% of MGTS residential subscribers were on the unlimited tariff plan, 28% were on the per-minute plan and the remaining 22% were on a combination of the two plans. 9% of MGTS corporate subscribers (including state-funded organizations) were on the unlimited tariff plan, 6% were on the per-minute plan and the remaining 85% were on a combination of the two plans as at the end of the third quarter of 2008.

Per-Minute Tariff Plan

Combined Tariff Plan

Unlimited Tariff Plan

Further information with regard to MGTS’s tariff increase is available on the MGTS corporate website at https://www.mgts.ru/.