Investor PresentationUBS conference “Russia: Energizing the World” September 2006

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Safe Harbor Statement•This presentation is strictly confidential to the recipient, may not be distributed to the press or any other person, and may not be reproduced in any form. Failure to comply with this restriction may constitute a violation of applicable securities laws.

•This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of JSC Comstar United TeleSystems (“Comstar UTS”) or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.

•The presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Comstar UTS has not registered and does not intend to register any portion of the Offering in the United States of America or to conduct a public offering of any securities in the United States of America.

•Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events revenues or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “predict”, “could”, plan”, “project,” “will,” “may,” “should” and similar expressions identify forward-looking statements. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, growth in demand for our products; economic outlook and industry trends; developments of our markets; legal trends and the impact of regulatory initiatives; and the strength of our competitors.

•The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control and we may not achieve or accomplish these expectations, beliefs or projections. In addition, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the achievement of the anticipated levels of revenues, profitability and growth, cost and synergy of our recent acquisitions and restructuring, the timely development and acceptance of new products, the impact of competition and competitive pricing, the ability to obtain necessary regulatory approvals and the ability to fund our future operations and capital needs through borrowing or otherwise, the ability to successfully implement any of our business strategies, the ability to integrate our business and to realise anticipated cost savings and operational benefits from such integration, our expectations about growth in demand for our products and services, the effects of inflation, interest rate and exchange rate fluctuations, and our success in identifying other risk to our business and managing the risk of the aforementioned factors, the condition of the economy and political stability in Russia and the other markets of operations and the impact of general business and global economic conditions.

•Neither we, nor any of our respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. All information not separately sourced is from Comstar UTS data.

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Eric Franke - Profile• Over 20 years of telecommunications experience

– First Vice President of MTS 2005 – 2006– General Director of UMC 2001- 2005– Chief Operations Officer in Russia and Ukraine (1998) and

President of mobile division (1999-2001) of  GTS (later renamed Golden Telecom)

– Vice President of Ericsson in Russia and the CIS 1994-1998

• Strategic review to be completed by October 2006 and announced with

the 1st half 2006 results in the beginning of October. To be followed by

a road show

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Our Profile

• A uniquely balanced business with leading position in

each of its chosen markets

• Synergies between an incumbent operator, alternative

operator and residential broadband and TV business

in Moscow and Moscow region

• Controls access to the last mile to 3.62 million Moscow

households through incumbent operator MGTS

• Established corporate business with 32 thousand

customers in Moscow

• Asset consolidator in the regions

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Our History

1993: MTU-Intel established

19891882 1993 1995

1882: MGTS Established

2005: Launch of Stream TV; Restructuring of Comstar

1989: Comstar UTS established

2001: Comstar launches ADSL

1995: Sistema acquires shares of MGTS during privatization

2001 20052000 2002 2003

2003: MTU-Intel launches residential broadband

2000: MTU-Intel launches corporate broadband

2002: Comstar launches NGN

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Operators

Corporate clients

Small- and medium-size enterprises

High-end housing

residential

Mass market

Moscow

Russia

CIS

InternetInternet TVTVVoiceVoiceData Data

transmissiontransmission

Comstar- the central brand of fixed line groupComstar- the central brand of fixed line group

Comstar-UTS

A broad range of services Diversified service platform Tailor made solutions for clients Individual approach to client

MTU-Intel

Access to the incumbent’s “last mile” Large market share compared to

competition

MGTS

Significant infrastructure for further development

Long standing relationships with residential customer base 

Established relationship with telecom operators

A Unique Portfolio of Customers, Services and Infrastructure…

Clie

nts

Ma

rke

ts

ServicesKey advantages

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… and Leading Market Shares in Every Market Segment

Leading Position onLeading Position on Moscow FMoscow Fixedixed--LLineine Market and still with Further Growth Potential Market and still with Further Growth Potential

Source: Direct INFOSource: Direct INFO

Golden Telecom

23%

Others28%

30%

28.6%

Others¹31.2%

Equant, Central Telegraph, Corbina

6.4%

Total Market: $3,566m2

10.4%

18.2%

Golden Telecom

14.3%

68%

Alternative Operators

32%

CentralTelegraph

11%

Equant 8%

Total: 6.2m Lines

1 Includes more than 400 companies2 Calculated based on RAS financials before intercompany eliminations3 Includes 35k corporate subscribers

Total: 610k Subs

41.0%

AKADO4.1%

HomeNetworks/Others

50.1%

Source: Direct INFO

Source: Direct INFO

Source: Direct Info

Rostelecom19.5%

Centel4.8%

Moscow Telecom Market Share(Sales, 2005)

Moscow Share of Lines(2005)

Moscow Broadband Segment Residential(Subscribers, 2005)3

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… Respectable companywith Respectable history…

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Time to start moving

• Improve efficiency

• Increase presence in the regions

• Proactively approach clients,

markets and new business

• Increase market share through

integration & acquisitions

• Increase value through the use of

IPO proceeds

• Accelerated acquisition process

PRODUCTS & SERVICES

Solid base Better execution

INFRASTRUCTURE

CLIENT BASE

MARKET POSITION

CASH $$$

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An Integrated Approach

SKILLED CORPORATE SERVICE PROVIDER

INCUMBENT FIXED LINE OPERATOR

STRONG PLAYER IN BROADBAND

REORGANIZE, MODERNIZE, RESTRUCTURE

SYNERGIES

To Improve Efficiency and Gain Momentum

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Short and Medium Term Targets

• Corporate Centre - better control of costs and profitability through

managed legal entities and coordination of main divisions

• MGTS – change corporate culture, increase efficiency

• Comstar – stimulate corporate sales

• Legal re-organization – simplified relationships

• Regional growth through acquisitions of non-Svyazinvest operators

and Greenfield projects

• Capex – acceleration of network modernization

• New regulation – capitalize on regulatory changes

• New technologies - WiFi, WiMax, Fixed - Mobile convergence

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Thank you for you attention!

I will be happy to answer your questions

If you will any questions after the conference please contact

Masha Eliseeva

Head of Investor Relations

Phone:+7 495 950 02 27

Cell: +7 495 997 08 52

E-mail: Eliseeva_MS@comstar-uts.ru

Web-site: www.comstar-uts.com