Yes it does but it does seem that they will not display as dropdowns from parent pages unless you create a custom menu to overirde the existing display.
1. You create a custom menu. http://en.support.wordpress.com/menus/
2. You add the Parent pages you want to display and arrange them in the order you want.
3. Then you add and drop and drag the subpages below the appropriate parent pages, and when you have everything arranged in the menu that you want you save the menu.
4. Go to the “theme location” module at upper left on the menu page. Select your custom menu name from the pulldown labeled “primary location.” Click the save button in that module.
5. Refresh your browser so that it isn’t possibly pulling a cached page, and view see your new menu with parents pages and dropdowns to sub-pages.