MOSCOW--(BUSINESS WIRE)--“COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST.L), the largest integrated telecommunications provider in Moscow and 69 Russian cities, today announced the decisions made at the Annual General Meeting of Shareholders (“AGM”) of its 55.73% owned subsidiary, Moscow City Telephone Network (“MGTS”), on June 26, 2009.

The AGM approved Annual Report of MGTS for 2008 and annual financial statements of MGTS for 2008, including the Income Statement (P&L Accounts) of MGTS for 2008; considered the issues related to the distribution of the profit and loss of MGTS upon the results of the fiscal year 2008; and elected the new Audit Commission. The AGM also approved the new edition of the Regulation on the MGTS’ Board of Directors. Deloitte & Touch CIS was appointed as independent auditor for 2009.

The 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%).

In addition, the shareholders approved the election of the members of the Board of Directors as follows:

1. Kirill Andreychenko – Vice President for Corporate Governance and Legal Issues, Comstar UTS. Mr. Andreychenko was nominated by Comstar UTS.

2. Mikhail Bedin – Director of Department for Subscriber Access Network Operation, Comstar UTS. Mr. Bedin was nominated by Comstar UTS.

3. Maxim Chernov – Director for Tariff Policy and Promotion of Services to Corporate Subscribers, Comstar UTS. Mr. Chernov was nominated by Comstar UTS.

4. Alexey Goncharuk – First Vice President, Comstar UTS. Mr. Goncharuk was nominated by Comstar UTS.

5. Dmitry Karmanov – Vice President for HR Management, Comstar UTS. Mr. Karmanov was nominated by Comstar UTS.

6. Irina Matveeva – Vice President for Economics and Finance, CFO, Comstar UTS. Mrs. Matveeva was nominated by Comstar UTS.

7. Andrey Morozov – Head of Legal Department, Moscow representative office of NCH Advisors Inc. Mr. Morozov was nominated by Lindsell Enterprises Limited, Reardon Enterprises Limited, Pruett Enterprises Limited, Broadhurst Investments Limited, Postland Enterprises Limited.

8. Oleg Mukovozov – Director of Corporate Governance Department, Comstar UTS. Mr. Mukovozov was nominated by Comstar UTS.

9. Sergey Pridantsev – President and Chief Executive Officer of Comstar UTS. Mr. Pridantsev was nominated by Comstar UTS.

10. Alexander Provotorov – First Deputy General Director, Svyazinvest. Mr. Provotorov was nominated by Svyazinvest.

11. Victor Savchenko – Deputy General Director, Svyazinvest. Mr. Savchenko was nominated by Svyazinvest.

12. Evgeny Yurchenko – General Director, Svyazinvest. Mr. Yurchenko was nominated by Svyazinvest.

At the statutory Board meeting following the AGM, the MGTS Board of Directors appointed Mr. Sergey Pridantsev as Chairman.

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 795 thousand residential broadband internet subscribers in Moscow, as well as 310 thousand residential regional and international broadband internet subscribers and 1.9 million residential regional pay-TV subscribers at the end of March 2009. Comstar generated US$ 334.4 million of revenues and a 37.8% OIBDA margin for the three months ended March 31, 2009. 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.

Comstar UTS
Masha Eliseeva
Tel: +7 985 997 0852
ir@comstar-uts.ru
or
Shared Value Limited
Matthew Hooper
Tel. +44 (0) 20 7321 5010
comstar@sharedvalue.net