July 9, 2009, Moscow, Saratov. COMSTAR – United TeleSystems (JSC COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announces that subscriber base of cable television STREAM-TV Group of companies (part of COMSTAR-UTS Group of companies) in company’s cities of presence for Saratov Region – Saratov, Engels, Balakovo, now amounts to 147.5 thousand as of the end of the second quarter of 2009. Attainment of this figure has been an acknowledgment of company’s leadership as the principal operator on Saratov Region market of cable TV services. STREAM-TV provides services in Saratov, Engels, and Balakovo. A share of cable TV market of STREAM-TV in Balakovo is 95%, in Saratov and Engels - 75% . ZAO Kaskad-TV providing cable television services under STREAM trademark in Saratov and Engels is actively enhancing its subscriber base. In 2008, a number of actions were taken to ensure increase in the company’s share on the cable television market. For example, a subscriber service system was revised: now, subscribers have personal accounts; potential subscribers may get access to the service by submitting their application via the website or over the phone; application processing procedure was also revised, with reduced connection latency. In 2008, a modern customer service center was established in Engels. In addition to activity aimed at improved quality of customer service, company’s employees are actively enhancing engineering capability. Kaskad-TV professionals carried out operations on the cable television head-end station by adding receiver tuners and modulation equipment to re-broadcast new satellite programs which made it possible to increase the number of cable network channels up to 70. Besides, to promote cable television services within framework of company common development strategy, customized marketing activities have been performed throughout the year to attract new subscribers and increase loyalty of existing ones. Among most popular advertising campaigns one may mention joint projects with popular channels, such as TeleNYANYA, JETIX, VIASAT SPORT, federal campaigns “Moved to STREAM!”, “STREAM as a present for loved ones!” Andrey Oslin, First Deputy Director General of ZAO Kaskad-TV, pointed out: “Users in Saratov and Engels have greatly appreciated benefits of STREAM television, since STREAM today means 70 popular TV channels, convenient subscriber support, personal cabinet of pay-TV subscribers, and large number of top-up payment points, with an option to get Internet broadband access at reasonable prices”. In Balakovo, the company continues to enhance its own subscriber base. The branch builds communication networks in the city: over the last 2 years, 52 km of fiber-optic cable and 94 km of coaxial cable were laid, the company built its cable network to ensure transfer from multi-user systems to HFC technology (Hybrid Fiber-Coaxial networks). The branch is improving customer care quality for its subscribers and is enriching their TV channel package. In particular, thanks to installation of TV BLANKOM head-end station the company enlarged its TV channel package to include 50 channels and considerably improved broadcasting quality. In Balakovo, the company offers Retro social package and Modern basic package. Presently, within the framework regional business restructuring and incorporation program for common regional assets consolidation center of COMSTAR-UTS the Volga region macro branch is being formed in the Volga federal district based on affiliates and branches of JSC COMSTAR-UTS and ZAO STREAM-TV (100% affiliate of COMSTAR-UTS). The macroregion branch will be located in Saratov.