OREANDA-NEWS. On 02 July 2008 “COMSTAR – United TeleSystems” JSC (LSE: CMST), the leading integrated telecommunications operator in Russia and the CIS, announced the decisions made at the Annual General Meeting of its shareholders (“AGM”) on June 30, 2008.

The shareholders approved the election of the members of the Board of Directors as follows:

1.    Anatoly Akimenko, Vice President of Access Industries;

2.    Anna Goldin, Vice President for Legal Issues and Head of Legal Group of Sistema;

3.    Jan Victor Dauman , Executive Director of InterMatrix Global Strategy Ltd;

4.    Sergey Drozdov, Senior Vice President, Head of Property Group of Sistema;

5.    Andrey Matyukhov, Director of Portfolio Strategy Department of Strategy and Development Division of Sistema;

6.    Sergey Pridantsev, President and CEO of Comstar UTS;

7.    Yngve Redling, Chairman of the Swedish-Russian bilateral working group for Information Technology, Chairman of the Swedish-Russian/ CIS Chamber of Commerce;

8.    Vitaly Savelyev, First Vice President, Head of Telecommunications Asset Management Division of Sistema;

9.    Dmitry Ustinov, Head of Financial Department of Finance and Investments Division of Sistema

Mr. Savelyev was elected as Chairman of Comstar’s Board of Directors.

Deloitte & Touch CIS was appointed as Comstar’s US GAAP auditor for 2008.

The AGM also approved an annual dividend of approximately RUR 62.7 million, or approximately US\\$ 2.7 million, for the twelve months ended December 31, 2007, to be paid to holders of Comstar’s shares as at the record date of May 23, 2008.  The dividend, which amounts to a payment of RUR 0.15 per ordinary share, or approximately US\\$ 0.0064 per Global Depositary Receipt (“GDR”), is due to be paid within 60 days of today’s AGM approval.

In addition, the AGM approved:

-    Annual Report of COMSTAR-UTS JSC for 2007;

-    Annual financial statements of COMSTAR-UTS JSC for 2007, including the Income Statement (P&L Accounts) of COMSTAR-UTS JSC for 2007;

-  Audit Committee’s opinion based on the results of the audit of the Annual Report of COMSTAR-UTS JSC for 2007, annual financial statements of COMSTAR-UTS JSC for 2007 and financial activities of COMSTAR-UTS JSC in 2007;

-    Auditor’s opinion based on the results of the audit of the annual accounts of COMSTAR-UTS JSC for 2007;

-    Amendments to the Company’s Option Programme bylaws;

-    Amendments to the Company’s Charter.