OREANDA-NEWS. August 13, 2007. “COMSTAR – United TeleSystems” OJSC (“Comstar” or “the Group”) (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS, today announced the appointment of Yuri Blokhin as Director of the Company’s South Branch operating across the Krasnodar region. Previously, Mr. Blokhin was General Director of Sochitelecomservice, fixed-line operator, acquired by Comstar in August this year.

Viktor Koresh, Vice-president for Regional Development of Comstar-UTS commented: “We have taken measures to strengthen the management in the regions where Comstar is present in order to enhance operating performance of our business outside Moscow.,Yuri Blokhin’s appointment is one of the recent changes in the local management. In his new capacity, Mr. Blokhin will be responsible for the merger of the operations of newly acquired company’s business with that of the operational Comstar-UTS Branch, i.e.: implement the networks interconnection, with the establishment of a unified telecommunications map, formulate the optimum pattern for the provision of telecommunication services to the Branch’s and Sochitelecomservice’s customers, based on the available network resources, aiming at reduction of costs, associated with the provision of telecommunication services to our clients and maintenance of the network infrastructure.”

South Branch has already launched a comprehensive plan to upgrade its in-house network in Sochi, to augment the network’s capacity and build the Next Generation Network. In addition, roll-out of an HDTV digital CTV system has commenced.