March 25, 2010, Moscow, Smolensk: COMSTAR – UnitedTeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication services in Russia and the CIS, announces that the Central Branch of COMSTAR-Regions (a 100%-owned subsidiary of COMSTAR-UTS) has launched broadband Internet services for private and corporate users in Smolensk.

The launch of the services became possible due to the network upgrade to the FTTB (Fiber-to-the-Building) technology. This technology serves as a basis to deploy metro multi-service fiber optical networks in Smolensk. These networks reach subscribers’ houses directly. To connect end users to the broadband Internet Ethernet (dedicated lines) is used, and CTV signals are delivered by coaxial cables of existing TV distribution networks.

The Smolensk Communication Services Center of the Central Branch of COMSTAR-Regions has already launched high-speed Internet for 360 flats. By the end of 2010 the Company plans to provide these services to more than 40,000 households and to gain at least 30% of the market. Currently, the Company offers its subscribers both unlimited pricing plans and pricing plans with prepaid traffic. The subscription fee is above 380 roubles a month and maximum transmission rate for an unlimited tariff is up to 2 Mbps.

Victor Koresh, Vice President for Regional Development of COMSTAR-UTS and Director General of COMSTAR-Regions, noted: “The launch of the broadband in Smolensk is an outstanding event for our company. Now we provide at least Double Play services including TV and an Internet access in all cities of our presence in the Central Federal District. This means that COMSTAR sequentially achieves all strategic goals for new services development in regions. We expect that the broadband service will be very popular among our CTV subscribers in Smolensk, considering our experience of its launch in other RF cities in 2009.”

The Smolensk Communication Services Center of the Central Branch of COMSTAR-Regions is one of the leaders among the city’s ÑTV operators; as of the end of 2009, its subscriber base includes almost 13,000 households.

For more details on the COMSTAR activity in Smolensk, please visit https://smolensk.stream-tv.ru/.