May 7, 2010, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading operator of integrated telecom services in Russia and the CIS, announces that on April 30, 2010, state registration of the takeover of 16 companies providing telecom services in 7 regions of Russia by COMSTAR-Regions (100% subsidiary of COMSTAR-UTS) took place.

COMSTAR-Regions took over the following companies: in Ivanovo – Ivanovo Cable Systems, InterTV Cable Systems, Inter-Telecom; in Kursk – TVK-Sever, TVK-Soyuznaya, TVK-Center, TVK-Seim, TVK-Kursk, TVK-Internet, Kurant, TVK, KTV; in Yekaterinburg – Ural Telephone Company; in Tambov – Tambov-Telecom; in Novgorod – Maxima Engineering; in Perm – First Perm Internet Center.

“We are pursuing our strategy of step-by-step takeover of telecom companies forming a part of COMSTAR-UTS Group within the framework of restructuring and creation of the single operating company, a center for consolidation of COMSTAR regional business. This will enhance the efficiency of our regional segment management. Although this consolidation process is still under way, we are already implementing all COMSTAR-UTS corporate management standards, create a common technology platform, enhance user experience, and launch new attractive offers for our users. Common work principles are specifically important as related to the development of integration with MTS and on the threshold of regional rebranding,” Viktor Koresh, Vice President for Regional Development and Director General of COMSTAR-Regions, says.

In August 2009, COMSTAR-UTS incorporated COMSTAR-Regions, its 100% subsidiary, for consolidation and management of all the regional assets of the Group. The company was incorporated by a merger of the seven largest subsidiaries. According to the approved management structure, COMSTAR-Regions incorporated its branches in the Central, North-Western, Southern, Volga, Ural and Siberian federal districts with centers in Moscow, Saint-Petersburg, Rostov-on-Don, Saratov, Yekaterinburg, and Tyumen, correspondingly. By now, 16 more subsidiaries have joined COMSTAR-Regions. Besides, a decision has been made to take over 13 joint-stock companies forming a part of COMSTAR-UTS Group.