April 15 2008, Moscow. COMSTAR-United TeleSystems (JSC COMSTAR-UTS, LSE: CMST), the largest operator of integrated telecommunication services in Russia and the CIS announces accomplished re-organization of ZAO Golden Line in the form of affiliation with JSC COMSTAR-UTS.

As a result of re-organization, JSC COMSTAR-UTS became a full legal successor in legal rights and obligations pertaining to ZAO Golden Line.

Affiliation of a now 100% associated company Golden Line was approved by COMSTAR-UTS shareholders at their meeting August 30, 2007.

"According to the Company Group Development Strategy we fulfill our re-organization program for all the affiliate entities on a continuous basis, and their affiliation with parent company COMSTAR-UTS", said First Vice President of COMSTAR-United TeleSystems Alexey Goncharuk. "However, we keep business continuity. Golden Telecom is one of the largest alternative operators in telecommunication market of Moscow that is why affiliation of this company is very beneficial for COMSTAR-UTS Group business development. Given this, Golden Line clients after their transition to COMSTAR-UTS did not suffer any lack of provided service quality, on the contrary, now they have new telecom experience including access to value-added services provided by our network."