March 13, 2008, Moscow. COMSTAR – United TeleSystems (COMSTAR-UTS JSC, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announces completion of both multiservice NGN-based network transport segment in Engels, Saratov Region, and Saratov-Engels regional NGN backbone.

Konversiya Svyaz CJSC, a daughter company of COMSTAT-UTS JSC in Saratov, has completed construction and commissioned transport multiservice IP- MPLS-based NGN network in Engels. An overall length of the network with its own fiber-optic lines makes 4 km; its data rate is 1 Gbps with scalability up to 10 Gbps

Metro network of Engels is connected by a fiber-optic line with Saratov transport NGN comprising 22 access nodes covering the whole city area. Saratov-Engels backbone length is 11 km with a bandwidth of 1 Gbps scalable up to 10 Gbps. Fiber-optic cable between Saratov and Engels goes along the bridge across Volga River to connect two cities.

Based on the constructed network in Engels, COMSTAR-UTS have already started to provide data transmission services.

On the basis of telecom infrastructure built by COMSTAR-UTS in Engels the company will soon launch a wide range of advanced digital triple play services – local telephony, broadband Internet (ADSL+ up to 24 Mbps, Ethernet up to 100 Mbps), IP-TV, as well as leased lines provision, VPN arrangement, video-conferencing, etc. The services are to be launched in Engels in the 2nd quarter of 2008.

Victor Koresh Regional Development Vice President of COMSTAR-United TeleSystems says, “COMSTAR-UTS group regional strategy envisages increase of its market segment in the group presence areas, first of all, by means of creating its own infrastructure. NGN launch in Engels to expand COMSTAR-UTS presence, means strengthening the company market position in Saratov Region and transition of Konversiya Svyaz CJSC and TK Overta CJSC from local to regional-level operator”.

Oleg Korolkov General Director of Konversiya Svyaz CJSC adds, “Our network employs new technologies and has huge potential both for traffic increase and for full range of telecom services in demand. We are going to further increase the capacity of our core transport network in Saratov Region, given a growing demand for integrated communication services, including broadband Internet”.

Presently, in Saratov, Konversiya Svyaz CJSC and Telecommunication Company Overta CJSC, COMSTAR-UTS affiliates, provide individuals and corporative clients with digital telephony service, ADSL2+ and radio access broadband Internet, data transmission and system integration services. Active works are under way to connect residential and commercial estate to the local telecom network. On the basis of Konversiya Svyaz CJSC and TK Overta CJSC acquired by COMSTAR-UTS in December 2005 Saratov branch is to be created.