February 11, 2010, Moscow, Saint-Petersburg, Veliky Novgorod: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication services in Russia and the CIS, informs that Novgorod Communication Services Center (CSC) of COMSTAR-Regions North-West (COMSTAR-Regions is a 100% subsidiary of COMSTAR-UTS), operating under the STREAM brand, has finished its telecom networks upgrade program announced earlier.

For 12 months, almost 18,000 apartments have been upgraded in different districts of Veliky Novgorod, with about 15,000 apartments being upgraded with the FFTB (Fiber-to-the-Building) technology. The investments in the network upgrade made over RUB 16 million. And now the residents can subscribe to an expanded cable TV package with over 50 channels. Also, the entire range of prices for broadband Internet, including unlimited price plans with the rate of up to 4 Mbps, is now available for subscribers.

On February 11, 2010 COMSTAR-Regions’ Novgorod Communications Services Centre also held a ceremony to open a new subscriber service office. The company’s specialists consult both individuals and legal entities on the contracts for pay TV and broadband services, on payments and services. The office located at the city center at 8 Lyudogosha St. occupies the space of over 50 sq. meters and is able to receive up to 300 visitors every day.

Arnold Shalmuyev, Deputy Head of the Novgorod Region’s Administration, remarked: “Active work of a major communications operator, as is COMSTAR, is important for Veliky Novgorod’s Administration, as it not only secures development of new services for the benefit of residents and companies in the city, investments in the infrastructure, and new jobs, but also guarantees additional tax revenues, which are essential for the government authorities in fulfilling their social commitments.”

Viktor Shmytinsky, Director of COMSTAR-Regions North-West, noted that the networks upgrade in Veliky Novgorod is part of their plan to expand the company’s business in the region: “In 2009 we launched broadband access in such towns of the North-Western Federal District as Severodvinsk and Mirny. The total number of connected households in the region has reached over 250,000 in cable TV and over 105,000 in broadband access. We aim to further expand our presence in those towns where we already do business and in other towns in the region. In future, we intend to offer our clients wherever our company has presence the full range of Triple Play services, including cable TV, broadband and voice.”

“Our activities – be it the large-scale networks upgrade, the new subscriber service office or newly offered price packages – all serve to secure comfort for our subscribers. I hope both existing and prospective subscribers from newly connected districts will appreciate our efforts,” Irina Chunina, Director of Novgorod CSC of COMSTAR-Regions North-West, noted.