REBRANDING COMSTAR

Tuesday, May 11, 2010
Today we announced our plans to offer Comstar’s products and services under the MTS brand by the end of 2011. After the rebranding is completed, MTS will offer a full range of fixed and mobile communication products under the MTS brand throughout Russia, expanding the presence of our brand and leveraging its strength to sell additional products. We will keep the MGTS brand for fixed telephony in Moscow, as it is one of oldest brands in Russia with roots in the 19th century.

The MTS brand has been recognized as the most powerful and valuable brand in Russia for the last three years by the annual BrandZ ranking published by the Financial Times and Millward Brown. Given the popularity of the MTS brand in its markets of operation, where the Company is renowned for its quality of services and its ability to introduce new innovative products and services, it is logical that we have decided to use the MTS brand for our combined services portfolio.

The rebranding of Comstar-UTS will include the gradual phase out of the Stream brand used for fixed broadband and pay TV products. Eventually, consumers in Russia will be able to get a full range of telecommunications services under the MTS brand, including mobile and fixed voice, broadband, pay TV and content and entertainment services. In addition, Stream and Comstar retail stores will be rebranded to MTS, while MTS stores will start offering a range of consumer products from Comstar.

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