Comstar Soft Launches WiMAX Network in Moscow

"COMSTAR – United TeleSystems” JSC ("Comstar” or "the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 66 Russian cities, today announced that it has soft launched a wireless broadband network in Moscow, which is based on standard 802.16e WiMAX technology. The full commercial launch of the wireless network using the 2.5-2.7 GHz frequency range and based on Nortel technological solutions is expected to be implemented in the second quarter of 2009. Comstar invested approximately US$ 20 million in the project in 2008.

The ongoing use of Comstar’s mobile WiMAX network will be free of charge during the test phase. Subscribers participating in the trial will be charged RUR 4,600.00 for a USB compatible WiMAX adapter, and pre-pay a monthly fee of RUR 200.00 for the first month of use following the full commercial launch of the WiMAX network. Participating subscribers will then also be eligible for a discounted ongoing tariff plan of RUR 200.00 from the date of the commercial launch for 2 gigabytes of internet traffic per month. This special tariff offering will only be available to participating subscribers until the end of the trial period. Details of the tariff plans subscribed after the end of the trial period following the full commercial launch will be announced in due course.

Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: "The launch of mobile WiMAX services in Moscow makes Comstar a truly universal communications provider, offering a complete range of telecommunications services to customers in Moscow. The combination of the WiMAX network with our fixed line internet broadband access services enables us to create a unified communications space. Users will be able to remain connected at all times – at home, at work and on the move. The network will provide secure outdoor connection coverage across almost all of Moscow. We are meticulously testing the new WiMAX network prior to full commercial launch, in order to ensure the highest possible service and efficiency levels.”

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For further information, please visit www.comstar-uts.com Comstar UTS is the leading fixed-line telecommunications company in Moscow. Comstar provides voice, data, television and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and exclusive last mile access to 97% of Moscow households. The Company also offers communications services in five Russian regions, Armenia and Ukraine. Comstar had 3.6 million residential subscribers and 793 thousand residential broadband internet subscribers in Moscow, as well as 61 thousand residential regional and international broadband internet subscribers at the end of September 2008. Comstar generated US$ 1,255.8 million of revenues and a 41.8% OIBDA margin for the nine months ended September 30, 2008. Comstar’s Global Depositary Receipts are listed on the London Stock Exchange (ticker: CMST).

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Comstar UTS. You can identify forward looking statements by terms such as "expect,” "believe,” "anticipate,” "estimate,” "intend,” "will,” "could,” "may” or "might”, the negative of such terms or other similar expressions. Comstar UTS wishes to caution that these statements are only predictions, and that actual events or results may differ materially. Comstar UTS does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Comstar UTS, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Comstar UTS operates in, as well as many other risks specifically related to Comstar UTS and its operations.