March 12, 2008, Moscow. COMSTAR – United TeleSystems (COMSTAR-UTS JSC, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, is implementing a project to provide communication facilities at Klyazminskoye Vodokhranilische VIP tourist complex being built in Mytishchi District of the Moscow Region.

COMSTAR-UTS signed an agreement with Klyazminskoye Vodokhranilische Tourist Complex managing company; to build telecom infrastructure at the territory of this large recreation area. The area of about 100 ha will host 50 low-rise hotel premises (cottages) for temporary and permanent residence, business center, coffee houses and restaurants, sporting and other facilities. The complex is to be completed in the year 2009.

Presently, COMSTAR-UTS are finishing design stage for a local distribution multi-service fiber-optic network and will start network roll-out early in the second quarter of 2008. In the nearest future, the operator will implement a 50-channel switchboard, scalable if necessary. Before the end of the second quarter 2008 one more switchboard is planned to be implemented at the territory of the facility residence area.

Provision of services is planned to be started in the second quarter 2008. The network being rolled out will provide the tourist facility residents and guests with a full range of digital telecom services, including voice telephony, broadband Internet, cable and IP TV, with a number of value-added services such as virtual private networks (VPN), dedicated digital data transmission channels (point-to-point), video conferencing, etc. Besides, COMSTAR-UTS infrastructure shall ensure operation of the facility auxiliary systems: security and fire alarms, video monitoring, etc.

The perspective is to extend the company distribution network to the territory of Sorokino village and other nearby residence areas to provide their inhabitants with advanced telecommunication services.