Moscow, Russia – July 14, 2008 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the leading integrated telecommunications operator in Russia and the CIS, today announced that Cornet-AM, an Internet services provider and a part of Comstar Group, has built the first mobile WiMAX network in the Republic of Armenia.

The wireless broadband network, based on the 802.16e standard, consists of 24 base stations which are connected to each other via radio relay lines and rented telecommunications channels. Airspan Networks (US) has provided network equipment. The 3.6-3.8 GHz frequency range was allocated for the network on the territory of 9 regions of the Republic of Armenia. The network has a high data transmission capacity and enables the provision of a full range of telecommunications services, such as data transmission, digital telephony, high speed internet access, conference calling, creating virtual private networks (IP VPN), for residential and corporate subscribers.

Victor Koresh, Vice President of Comstar for Regional Development, commented: “We have implemented the first part of our strategic project aimed at expanding our presence in Armenia. The next step involves the development of the voice services in the Republic. Earlier this year, Cornet-AM applied to the Public Service Regulation Committee of the Republic of Armenia to obtain the numbering capacity of 60,000 telephone numbers”.