Comstar UTS: Comstar Announces Results of AGM

"COMSTAR – United TeleSystems” JSC ("Comstar” or "the Group”) (LSE: CMST), the leading integrated telecommunications operator in Russia and the CIS, today 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. The documents are available on the Company’s website at www.comstar.ru/en/for_investors/corporative_management/meetings/300620 08/. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) For further information, please visit www.comstar-uts.com Comstar UTS is the leading fixed-line telecommunications company in Moscow. Comstar provides voice, data, television and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and exclusive last mile access to 97% of Moscow households. The Company also offers communications services in five Russian regions, Armenia and Ukraine. Comstar had 3.6 million residential subscribers and 750 thousand residential broadband internet subscribers in Moscow, as well as 40 thousand residential regional and international broadband internet subscribers at the end of March 2008. Comstar generated US$ 1,562.4 million and US$ 417.0 million of revenues and a 42.5% and 40.8% OIBDA margin for the twelve months ended December 31, 2007 and the three months ended March 31, 2008, respectively. Comstar’s Global Depositary Receipts are listed on the London Stock Exchange (ticker: CMST). Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Comstar UTS. You can identify forward looking statements by terms such as "expect,” "believe,” "anticipate,” "estimate,” "intend,” "will,” "could,” "may” or "might”, the negative of such terms or other similar expressions. Comstar UTS wishes to caution that these statements are only predictions, and that actual events or results may differ materially. Comstar UTS does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Comstar UTS, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Comstar UTS operates in, as well as many other risks specifically related to Comstar UTS and its operations.