OREANDA-NEWS. February 24, 2010. “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 69 Russian cities, announced that the Board of Directors (the “Board”) of Moscow City Telephone Network (“MGTS”) subsidiary, set the date for MGTS’s Extraordinary General Meeting of Shareholders (“EGM”) for March 26, 2010.  Comstar owns 69.93% of MGTS share capital (or 69.96% of total number of ordinary shares and 69.75% of total number of preferred shares).

The Board recommended dividends of approximately RUR 321.9 million, or approximately USD 10.7[1] million, for the twelve months ended December 31, 2008 to holders of MGTS preferred shares as at the record date of February 15, 2010. The dividends represent approximately 10% of MGTS’s net income for 2008 under Russian Accounting Standards. The dividends, which amount to a payment of RUR 20.16 per a preferred share, or approximately USD 0.67, are due to be paid within 60 days of the approval by the EGM. Preferred shares become non-voting upon dividend payment.

Earlier, in June 2009, MGTS AGM voted against the recommendation of the MGTS’ Board of Directors to pay an annual dividend for the twelve months ended December 31, 2008, by a majority vote (approximately 98%).