Moscow, Russia – December 28, 2007 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the leading integrated telecommunications operator in Russia and the CIS, today announced that the Extraordinary General Meeting of Shareholders of Comstar UTS approved the merger of its 100% - owned subsidiaries CJSC Sochitelecomservice and CJSC PortTelecom with Comstar UTS.
Sochitelecomservice (city of Sochi) will be integrated with Comstar’s South branch, while PortTelecom with the Moscow Region branch. This reorganization is to be completed in the first half of 2008.
Sochitelecomservice provides local and broadband Internet services to residential and corporate subscribers via ADSL. After the merger Comstar will become the largest alternative telecom operator in the city of Sochi. Its South Branch will significantly enhance the network capacity in this area, introduce NGN solutions, roll out digital CATV, supporting the HDTV standard. It also plans to provide services in the framework of joint projects with JSFC Sistema, inter alia connected with preparation of Sochi 2014 Olympic Games.
PortTelecom (Moscow region) is an operating company providing comprehensive telecommunication services to residential and corporate subscribers, including high end cottage villages and large development areas in the city. Its corporate clients include: Sheremetyevo-2 and Sheremetyevo-1 airports, Aeroflot–Russian Airlines, Lufthansa Technik AG, Aeroflot-Don, Continental Airlines, Sheremetyevo-2 and Novotel hotels.