June 9, 2008, Moscow: COMSTAR – United TeleSystems JSC (COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announced that COMSTAR-Direct CJSC, the major broadband Internet provider (STREAM brand), a member of COMSTAR-UTS Group, starts sales of broadband Internet access services via QIWI payment terminal network serviced by the United Instant Payment System (UIPS).

According to the terms of partnership between COMSTAR-Direct CJSC and United Instant Payment System CJSC, broadband Internet access services will be promoted under STREAM brand via Direct Contact system. The system is implemented on the basis of QIWI nation-wide payment terminal system, a unique service for all day-to-day delivered services payment: from mobile phone account and Internet access, to utility services and banking credits.

The project is still in its pilot stage. Its initial step (to be over by July 1, 2008), involves 800 terminals located at the most active public places (shopping malls, supermarkets, gas filling stations, banking offices, entertainment and fitness centers, educational, sports institutions, etc.) in various regions of Moscow city.

By means of payment terminals, all QIWI users gain access to COMSTAR-Direct micro-site with detailed info regarding available services, tariff plans, promo events, and Provider's offers. At a micro-site the user can choose his tariff plan or place an order to subscribe to STREAM services (the user's contact phone number is required which is to be entered by means of the virtual keyboard). This order automatically goes from OSMP terminal to Company's experts who will process it accordingly.

"We keep expanding our range of sales channels to provide Internet access services. Given this, we also rely on development of interactive communications with our clients. Innovative marketing channels make the contact between subscribers and operator extremely simple, prompt, and convenient", said Sergey Nazarov, COMSTAR-UTS Marketing Vice President. "Sales of Internet access services via instant payment terminals combine such advantages as wide audience reach and focused client information, as well as a convenient option to purchase the service on a real-time basis", Sergey Nazarov added.

"Cooperation between QIWI payment service and OJSC COMSTAR-UTS enables us to provide a convenient way for the users to pay for the services provided", says Vladimir Lopatin, UIPS Director General. "May I remind you that now "STREAM" subscribers can pay for their Internet access service via as many as 70,000 QIWI payment terminals", Lopatin pointed out.

Note:

In Moscow and Zelenograd alone, more than 7,500 terminals have been connected to Direct Contact system at the locations with the most active client traffic. Each terminal processes about 85-90 payment transactions per day, which makes over 18 million payment transactions a month with all QIWI terminals connected to Direct Contact system.