COMSTAR-United TeleSystems OJSC Second Quarter 2008 Financial Results

MOSCOW, Russia — “COMSTAR – United TeleSystems” OJSC (LSE: CMST), the leading integrated telecommunications operator in Russia and the CIS, today announced its unaudited consolidated US GAAP financial results for the second quarter and six months ended June 30, 2008.

Overview of Broadband Business in Moscow & the Regions

The Broadband business comprises the Group’s broadband operations in Moscow and the Russian Regions.

The number of Comstar-Direct double-play (Internet & pay-TV) subscribers grew by 44% year on year and 9% quarter on quarter to 146 thousand and generated US$ 21.4 of ARPU in the second quarter.

The number of pay-TV subscribers in the regions increased by 32% quarter on quarter to 142 thousand customers.

Comstar Takes over Management of STREAM-TV Regional Assets

Comstar is taking over the management STREAM-TV Group, which is the largest pay-TV operator in Russia and had a 17% share of the Russian subscriber market as at the end of 2007. The networks pass over 3.5 million households and have over 1.5 million active pay-TV subscribers and over 200 thousand broadband internet subscribers.

Approximately 30% of STREAM-TV Group’s network has already been modernized to enable the provision of triple-play services (VoIP, internet and pay-TV). Comstar and STREAM-TV’s regional broadband market share stood at 13% as at the end of 2007.

Interlink Group

Comstar acquired Interlink Group in June, which is one of the leading players in the alternative fixed-line communications market in the Ryazan region and provides voice, internet access and leased channel services, as well as the design and the development of fibre-optic and other cable networks. The company provided over 15 thousand telephone numbers, internet access to over 2 thousand subscribers, and Cable TV to over 20 thousand customers at the end of 2007.

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