Moscow, Russia – May 22, 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 Board of Directors (the “Board”) set the date for Comstar’s Annual General Meeting of Shareholders (“AGM”) for June 30, 2009. 

The Board recommended an annual dividend of approximately RUR 90.3 million, or approximately US$ 2.9¹million, for the twelve months ended December 31, 2008 to holders of Comstar shares as at the record date of May 22, 2009. The dividend represents approximately 2% of Comstar’s consolidated net income for 2008 under US GAAP. The dividend, which amounts to a payment of RUR 0.22 per ordinary share, or approximately US$ 0.007¹per Global Depositary Receipt (“GDR”), is due to be paid within 60 days of the approval by the AGM.

In addition, the Board recommended the AGM to approve Comstar’s Annual Report 2008 and the annual financial statements for the financial year ended December 31, 2008, as well as distribution of Comstar’s profit and loss upon the results of the fiscal year.

The Board also recommended the AGM to elect new members to the Board of Directors and the Audit Committee of Comstar, approve an independent auditor for 2009, and approve the revised edition of the Charter.

The AGM will also consider amendments to the bylaws regarding the Annual Meeting of Shareholders, Management Board, President, Audit Committee and Compensation policy for the members of the Board.

Further information with regard to the AGM and other related issues will be available on the Company’s web site www.comstar-uts.ru.

¹Based on the Russian Central Bank exchange rate as at May 22, 2009.