Moscow, Russia – July 20, 2007 - “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the leading combined telecommunications operator in Russia and the CIS, today announced the launch of a new programme, “Phone Master”, aimed at leveraging MGTS’ technical support personnel in selling STREAM broadband and pay-TV services. By the end of 2007, 400 specialists will be trained to install triple play service packages, set up internet connections and answer subscriber questions regarding the STREAM service offering. These services will be provided to the subscribers free of charge.

Sergey Pridantsev, President and CEO of Comstar UTS, commented: “The launch of the “Phone Master” programme is in line with our strategy to promote and develop the STREAM services in the Moscow mass market. The integration of our sales and technical support initiatives is intended to accelerate subscriber acquisition, speed up installation time, enhance customer service levels, and improve workforce utilization and efficiency levels overall. The next step, which we are already working on, is to optimize our sales network through cooperation with Group companies and locate our sales outlets in close proximity to our customers.”