21 July 2008, Moscow. COMSTAR – United TeleSystems (COMSTAR-UTS OJSC, LSE: CMST), a major operator of integrated telecommunications services in Russia and the CIS, announces the launch of Companies’ Branches in the cities of Rostov-on-Don and Ryazan.   

Pursuant to the resolution of COMSTAR-UTS OJSC Board of Directors’ meeting, the Company’s Branch in Sochi is to be dissolved effective 1 August 2008, with a Branch to be set in Rostov-on-Don. Meanwhile, COMSTAR-UTS continues to aggressively grow its business in the Krasnodar Territory, including the resort town of Sochi. Also, another Company’s Branch is to be launched effective 1 August 2008 in Ryazan.     

According to COMSTAR Vice-president Viktor Koresh: “These developments are in line with the general strategy for COMSTAR-UTS Group of Companies’ growth. The strategy envisages restructuring of the assets to establish an effective integrated operation structure across the country. Moving the Branch – South headquarters to Rostov-on-Don, Russia’s capital of the South, where COMSTAR-UTS is present through the region’s major alternative operator, Digital Telephone Networks – South CJSC, and setting up a Company’s Branch in the Ryazan Region, where we have recently acquired Interlink Group of Companies, will allow optimizing our business management structure in the crucial macroregions such as the South and Center of the country’s European part.”