Moscow, Russia – October 14, 2009 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 69 Russian cities, today announced that Moody’s Investors Service has confirmed its "Ba3" corporate family rating with a stable outlook for Comstar.

According to Moody’s Investors Service, the rating has been confirmed following the completion of the sale of Sistema’s 50.91% stake in Comstar to MTS.

In August 2009, Moody’s Investors Service placed Comstar’s rating under review for a possible downgrade following the announcement of Sistema’s agreement to the acquisition of its stake in Comstar by MTS. In June 2009, Moody’s Investors Service confirmed its "Ba3" corporate family ratings with a stable outlook for Comstar and its 55.73% owned subsidiary, Moscow City Telephone Network (“MGTS”).