COMSTAR-UTS HAS ACQUIRED 71.5% OF ALLNET INTERPRISES.

Analytical Information Agency, Russia
Nov 29 2006

Comstar-UTS OJSC has closed the acquisition of 75.1% shares of Callnet,
an Armenian telecommunication company, with a possible exercise of
an option to buy out the remaining share, Comstar says.

"It is the formal completion of the transaction, with consideration
of changes in financing terms," Comstar’s press service said.

"This is the first deal of the planned and declared in October 2006
acquisitions that will enable us to use the funds raised during the
IPO to realize our investment program in regions," Comstar’s General
Director Erik Franke said.

Comstar-UTS holds fixed-line telephony assets of Sistema JSFC. They
are 53.04% shares of MGTS, 100% shares of MTU-Inform CJSC , 100%
shares of Telmos CJSC, 100% shares of MTU-Intel CJSC (including its
100% subsidiary Golden Line).

In 2005, Comstar’s net income under US GAAP grew by 39.% to $106 mln.

Proceeds rose by 30.6% to $907.6 mln.

Callnet is one of the four Armenian operators holding a traffic
transit license. Its 100% subsidiary – Cornet – is the only Wi-Max
supplier in Armenia.

In 2005, Callnet’s proceeds doubled y-o-y to $4.3 mln.