Corporate presentation

1. Corporatepresentation May 2007

2. Disclaimer 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 realize 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.

3. Comstar at a Glance • The leading combined telecommunications company in Russia and CIS (incumbent in Moscow and leading alternative operator with presence outside Moscow) • Completed vertical integration of all divisions and successful rebranding in 2006 • Comstar provides fixed line telephony, broadband internet and multi-service telecom solutions to residential and corporate clients in Moscow, regions and internationally through its five business units: • MGTS • Comstar-Direct • Comstar-Moscow • Comstar-Regions • Comstar-International Traditional segment ~ 3.6 million residential and ~ 73.000 corporate subs ~ 500,000 residential internet subs ~ 34,000 corporate subs Alternative segment Presence in 5 regions, licenses, WiMax frequences Presence in Ukraine and Armenia, WiMax licenses, synergies

4. CAGR = 23% CAGR = 26% Proven Track Record Of Delivering Results Revenues (US$ in mln) OIBDA (US$ in mln) 1,120.2 428.6 907.6 358.8 695.2 250.0 589.2 236.0 190.0 438.7 Traditional segment Alternative segment Intercompany eliminations • Underlying OIBDA up 19% year on year to US$ 428.6 million with underlying OIBDA margin of 38.3% • In Traditional 44.3% • In Alternative segment 18.1% • Restructuring charge US$ 3 million • CPP added US$29 million in costs • Provision for Rostelecom traffic US$ 6 million • Revenues up 23% year on year to US$ 1.12 billion • In Traditional segment up 29% • In Alternative segment up15% • CPP added US$36 million in subscriber revenue • Companies, acquired in 2006 added US$ 11.4 million

5. 2006- Breakthrough Year • Successful IPO on LSE raising $1 billion for 33% of shares • Successful rebranding of all the companies of the Group • New international management team in place • Regulatory changes successfully adopted • Increase in ownership in MGTS by 9% to 56%, $181.4 million spent • Successful restructuring of the business: operating units separated from corporate center • Optimization of Alternative segment: headcount reduced by 277, rented office space reduced by 3,400 square meters, management layers reduced from 8 to 4, 3 billing systems being integrated, ERP system being launched • Creation of Corporate Center • Share option programme for Directors and top-management launched • New KPI-based motivation system for the employees introduced • International expansion launched with 4 acquisitions in Ukraine and Armenia • Election of two independent directors, Dietmar Kuhnt and Yngve Redling • 4 BoD committees established: strategy, audit, corporate governance and remuneration • First combined sales and service office opened for Comstar – Direct and MGTS • Acquisition of 25% + 1 share in Svyazinvest for $1.4 billion including call and put option • Arrangement and utilization of US$ 675 million loan facility

6. Combined Telecom Operator COMSTAR-UTS CORPORATE CENTRE 25% +1 Svyazinvest Moscow region Regions International 52% (48% owned by SMM) 67% voting 56% economic 100% (Comstar-International) (MGTS) (Comstar - Direct) (Comstar-Regions) (Comstar-Moscow) • CLECs • Multi-service solutions to corporate clients/elite housing • ILEC • Regulated voice • VAS to residentials and corporates • Wholesale access • Interconnect to other operators • CLEC • Broadband Internet • IPTV (double play) • Other VAS • Dial-up to residentials an corporates • CLECs • Multi-service solutions to corporate clients/elite housing • CLEC • Multi-service solutions to corporate clients/elite housing Operations are divided into five business lines with clear P&L responsibilities

7. CAGR = 28% MGTS: Fixed Line Incumbent in Moscow Total MGTS Revenue (US$ million)1 • MGTS and Comstar-Moscow are using the combined backbone (11,000 thousand km of fiber) • “Last mile”: 98% share of residential installed access lines in Moscow; 100,000 km of copper; 41% of lines digital (94% by 2010); direct upgrade to NGN. No local loop unbundling in the mid-term • NGN network – infrastructure investments to increase non-regulated services: single backbone for MGTS and Comstar • Use of MGTS real estate: US$ 7.6 million gain from sale of 1 switching center in 2Q’06. Further sales- early 2009. Total 114 switches to be renovated and partially freed up through 2012 • Employee reduction program: approx. 1,400 to 16,189; number of lines per employee expected to increase by 45% from 268 by 2010 • Client orientation: single customer care number; first combined sales center with Comstar Direct (six more to open in 2007) 1 Including intercompany Number of Employees

8. MGTS: Fixed Line Incumbent in Moscow (2) • Market deregulation: first step - introduction of per minute billing- from Feb.1, 2007; followed by active marketing initiatives: • Time-based tariff=125 RuR+ 0.28 RuR per minute ($4.7+$0.01 per minute) • Combined tariff= 229 RuR for 370 min +0.23 RuR per minute when the limit is exceeded ($8.7+$0.009) • Unlimited tariff= 380 RuR ($14.4) • New tariff structure and additional revenue sources: tariff rebalancing; CPP added US$ 32.9 million in ’06; Budget reimbursements – received US$ 25.8 million in 2006, another US$ 36 million to be received in 2007 • New services (SMS from fixed line) Growth in Regulated Tariffs (in USD)1 US$7.6 1Before the introduction of per minute tariffs

9. “One-stop-shop” • Successful rebrandingof all operating companies • “One-stop-shop” concept in servicing residential customers • 1st combined and service office opened in December 2006, six more to open in 2007 • Cross-sales and synergies

10. Comstar-Moscow - Leading Alternative Provider • 19% share on the Moscow corporate market • Restructuring and CLECs integration in 2006 resulted in substantial savings: reduction of labour force by 20% in November – December 2006, office space reduced by 3400 square meters, expected savings of US$ 8 mln from 2007. Further cost efficiency targets: • optimisation of existing network and cost structure (office rent, centralized purchasing) • Single NGN network with MGTS; targeted Capex spending • Key drivers: business centers and hi-end real estate developments show good growth potential • Introduced new services: IP-VPN, “Hybrid” VPN, WiFi telephony and Logic Line, aimed at better ARPUs • Comstar and MTT signed an agreement to provide wireless access through Comstar’s Wi-Fi network to MTT’s roaming partners via WLAN roaming to Russian and foreign mobile operators and Wi-Fi providers, with effect from the third quarter of 2007. • Cooperation with MGTS to provide wireless Wi-Fi connection through coin-box telephones network in Moscow (approx. 200 by the end of 2007) Corporate Revenues of Alt. segment (US$ million) CAGR = 15% Corporate Market in Moscow (2006) 1 Total: US$ 2.16 bn 1 Source: Direct Info (by revenue), Comstar market share includes MGTS (10.3%) and Comstar-Moscow (8.2%) corporate clients

11. Comstar-Direct • Comstar-Direct controls 38% market share of broadband in Moscow where broadband penetration is at 26% • 44% growth in broadband customers YoY; 38% market share in Moscow 3; double play – 18% of PayTV market in Moscow • Added subscriber # 400,000 on April 16, 2007 • ARPL : US$ 20.2, + 7% YoY growth • New services introduced – competitive on price and speed • Launch of IPTV • VOD and gaming add-ons for broadband customers • US$ 8/month and free ADSL modem offer for dial-up customers • Leveraging Comstar group synergies: • First of seven combined sales office • Segmentation of MGTS customer base - over 90% of lines are ADSL compatible, low levels of incremental capex • Direct mailing to MGTS subs • Joint call center with Comstar-Moscow • Proprietary call center capacity doubled • New reglament with MGTS to be introduced in June 2007- to reduce connection time • Targeted marketing campaigns • Broadband penetration in Russia is still relatively low compared to CEE • Growth drivers: • PC penetration • Internet penetration • Dial-up replacement InternetResidential Subscribers (‘000) 1 ADSL Dial-up Double play (+TV) Broadband Penetration 2 1 Source: Company data 2 Source: Direct info, 2006, by number of households 3 Source: Direct Info, 2006, including home networks, using Stream, by number of subs

12. Markets and customers overview Moscow Fixed-line Market: Active Lines (By number of lines, 2006) 34% 68% 4.3m active lines 0.6m active lines Total: 6.2m Lines Moscow Residential Broadband Segment (By number of subscribers, 2006) Comstar-Direct, 38% Home networks, 32% 360 thousand subs (ADSL Stream) 19 thousand subs (home networks using Stream) Total: 0.99m Subs Comcor (AKADO), 10% (cable) Centel, 8% (cable) Corbina, 12% (cable) Source: Direct INFO * 38% including subs of home networks (2%) who connect up to Internet using Comstar UTS channels # 1 in residential broadband users, alternative corporate segment & by number of lines in Moscow

13. Comstar-Direct- targeted marketing campaigns

14. Comstar-Direct- attractive tariffs* vs. average 33 kb/s for dial-up * As of May, 2007

15. Comstar-Regions • Focus on top priority regions • Currently present in St. Petersburg, Saratov, Tyumen, Samara and Sochi • Digitalization completed at Tymenneftegazsvyaz in 2006 • Cooperation with regional ILECs in Svyazinvest holding- the entire 2007 will be dedicated to building relationships with Svyazinvest • Development outside Moscow through: • Selected M&As • WiMax roll out subject to attractive business case • Cooperation with regional incumbents • Use of MTS network infrastructure where economically feasible • Building license coverage: key licenses obtained including for the use of wireless technologies and 5.15-5.35 GHz pre-WiMax frequences, for IP voice data transmission, for data transmission St. Petersburg Tymen Moscow Samara Saratov Sochi * 33% Mln. US$ * Includes revenues outside Russia

16. Comstar-International • Focused on metropolitan areas (Kiev and Odessa) • Selective M&A to expand geographical presence • UMC/MTS broad cooperation • WiMax licenses obtained • Leading CLEC is acquired in 2006 • Unique WiMAX license for the entire country • Subscription for 51% shares of a leading ISP in 2006 • Attractive market with extremely low broadband penetration • Strong local partners UKRAINE • 4 acquisitions of alternative operators in Ukraine and Armenia – Callnet and Cornet (Armenia) and DG Tel/Technologic Systems (Ukraine) in 2006 • Subscription to 51% shares in Hellas on Line, third largest Greek fixed line and broadband provider (subject to Antimonopoly approval, not consolidated yet) ARMENIA GREECE

17. Svyazinvest – acquisition of 25% plus one share • Svyazinvest companies: • Center Telecom • North-West Telecom • Uralsvyazinform • VolgaTelecom • SibirTelecom • South Telecom • Far East Telecom • Rostelecom +28% (23% voting) in MGTS Source: Svyazinvest Call ($6.97) and put option for 11% of Comstar’s shares given to the Seller aimed at resolving cross shareholding between Comstar and MGTS Acquisition of Svyazinvest stake is both a “strategic bet” and attractive investment with opportunities to realize additional synergies

18. Svyazinvest strategy Short Term Medium Term Long Term Financial investment Operating synergies Strategicinvestment • Increased efficiency • Broadband development in the regions • Negotiate access to the regional infrastructure • 2 representatives on the BoD • Changes to the charter • Dividends • Key strategic decisions • Improved reporting • Privatization / restructuring • Buy out Svyazinvest’stake (23%) in MGTS Acquisition of Svyazinvest stake is both a “strategic bet” and attractive investment with opportunities to realize additional synergies

19. Value Oriented Strategy • Completed integration of Moscow operations in 2006 • Follow “one company approach” • Synergies within group operations • Customer segmentation 7 • 2 seats on BoD • Buy out of MGTS stake • Participation in Svyazinvest privatisation 2 Svyazinvest Integration 1 Restructuring 6 3 • Deploying ADSL • Rollout of extended offering (started with IPTV) • Using favourable regulatory environment • Developing unique market solutions • Utilizing synergies with MTS • Optimizing sales & service functions • Simplified legal structure • Four business lines in P&L Convergence Broadband 5 4 • NGN network and digitalization • Realizing efficiency gains • Monetising real estate assets • Selective CLEC M&A • Deploying wireless technology • Selective international expansion MGTS Modernization Regional Expansion Integrated telecom solutions for all market segments in Moscow and regions with growing share of non-regulated revenues; Increase in contribution from regional operations; leader in offering of next generation services

20. Outlook for 2007 • Revenue growth in line with the growth in 2006 • Regulated tariff growth • Growth in revenues from corporate data and internet • Growth in revenues from residential broadband internet • Approximately US$36 million compensation from the budget in 2007 • OIBDA margin improvement from underlying level of 38.3% before new acquisitions • Restructuring and cost optimization programme • MGTS tariffs • Regulatory changes • CapEx less than US$350 million

21. Investment Case • Combined telecom operator with robust growth, solid profitability and cash flow generation outlook • Unique ‘last mile’ used for bundled offerings • Strategic shareholder in Svyazinvest (25% + one share) with 2 seats on the BoD • Established and growing regional (5 regions) and international presence (Ukraine, Armenia and prospectively Greece) • Improved transparency of operations: 5 P&L lines and new segmental reporting structure from Q1 2007 • Comstar enjoys synergies with sister companies MTT and MTS

22. Appendix

23. Profit and Loss Statement: Selected Items • 23% revenue growth YoY • 38.3% OIBDA margin in 2006 • Stock bonus awards for US$ 62 million • Change in fair value of call and put option US$60 million

24. Revenue Breakdown • Traditional segment: 29% revenue growth YoY • Alternative segment: 15% revenue growth YoY • Broadband: 54% revenue growth YoY • Regions: 33% revenue growth YoY • CPP added US$ 36.3 million to the Group’s revenue from subscribers

25. Cash Flow Statement: Selected Items • CFs from Operations of US$ 273.6 million • US$ 976 million raised during the IPO in February 2006 (net of respective costs)

26. Balance Sheet: Selected Items • In December 2006 Comstar arranged US$ 675 mln 6 month loan facility with ABN AMRO Bank N.V. with interest rate at LIBOR plus 1.2%. Loan can be extended to 12 months

27. 4Q KPIs [1] Includes 3,605 subscribers who signed contracts but were not connected to the service as at December 31, 2006

28. Legend: Amount of telecom services spending in US$ in 2004A Solid Macroeconomic Fundamentals Real GDP Growth Forecasts (2005A-2011E CAGR) Telecom Spending Growth Opportunity Czech Republic US$3.9bn Hungary US$4.1bn Poland US$8.7bn Source: EIU, January 2007 GDP/Capita (Purchasing Power Parity) 2005A Russia US$14.1bn Ukraine US$3.7bn Source: Pyramid Research (November 2005) Source: EIU, January 2007 The Russian market provides high growth potential given expected real GDP growth and a relatively under-penetrated telecoms market

29. Attractive Market Potential Fixed Voice Penetration (2006) PC Penetration (2006) Internet Penetration (2006) Broadband Penetration (2006) Source: Company data,Pyramid Research, stats agencies, Direct INFO Note: Penetration in all charts calculated as % of households Well positioned in favourable Market Conditions

30. Ample Opportunities In Broadband Moscow Russia (ex-Moscow) Internet Penetration Internet Penetration 05-10 CAGR = 14.9% 05-10 CAGR = 34.3% Broadband Penetration Broadband Penetration 05-10 CAGR = 28.7% 05-10 CAGR = 42.6% Pay-TV Penetration Pay-TV Penetration 05-10 CAGR = 5.9% 05-10 CAGR = 33.0% Source: Company data, Direct INFO, Pyramid ResearchNote: CAGR represents growth in projected users. Penetration calculated as % of households Significant growth potential in the Residential Broadband and Pay-TV markets

31. Moscow Internet Market In 2006 Home Computers Penetration Level (2006) Internet Penetration (2006) Structure of Connections (2006) 100% = 3,867households 62.4% 100% 18.6% 18.9% 31% Dial-up 36.9% not connected to Internet 41.2% connected to Internet 58,8% 34% 2,668householdswitha computer Broadband 63.1% 69% 100% 8.1% 9.9% 11.6% 36.4%¹ 1,570 households connected to internet Source: Direct INFO Note: All household data in 000’s ¹ Number excludes subs of homenetworks who connect up to internet using Comstar-UTS channels (this would account for additional 2%) In 2006 almost 1.5m households in Moscow are connected to the Internet. More than a half of them use Broadband Internet

32. Regulatory Changes Recent and foreseeable changes have no adverse impact on fundamentals of Comstar’s business

33. Shareholder Structure Free float incl. GDRs 35% Regional branches & subsidiaries 51% 48% 52% 14%1 56% econ. 23% econ. 21% econ. 25%+12 Other Optimization of ownership structure: • Integration of Golden Line into Comstar • Turn 100% owned subsidiaries into branches 1 MGTS owns 14% of Comstar, as of Dec.12,2006 2 Including 7.7% owned by MGTS Finance

34. Contacts For additional information please visit www.comstar-uts.com or contact Masha Eliseeva Head of Investor Relations Phone: +7 985 997 08 52 E-mail:ir@comstar-uts.ru