July 12, 2010, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication solutions in Russia and the CIS, announces the completion of work to migrate their own internet users’ traffic to their own fiber optic transport communication network owned by MTS Group (OJSC Mobile TeleSystems), NYSE: MBT) in Moscow-Kiev direction.

The work to switch over the facilities from rented telecom channels used by COMSTAR-UTS for sending Internet traffic of their subscribers between Moscow and the Ukraine to MTS telecom channels has been in progress since February 2010. By July 2010, COMSTAR-UTS and MTS have completely finished the project for migration to MTS telecom network. The throughput capacity of IP network connecting COMSTAR-UTS communication nodes in Moscow and Kiev is 20 Gbit/s.

“This project is being accomplished within the framework of COMSTAR-UTS and MTS. Now, the complete traffic of our users in this direction, both in Moscow and in the Ukraine, is transported via the Group networks, spending no funds for the use of the third-party operators’ telecom channels. For us, this is primarily, a substantial reduction of an expenditure item, and, secondly, this is a great guarantee of the effectiveness and operation reliability of telecom networks and Internet access provision services. At present, both MTS and COMSTAR-UTS accomplish the migration of COMSTAR-UTS Internet traffic to MTS network in North-Western direction, Viktor Belov, COMSTAR-UTS Service Platform and Networks Development Director, said.

At present, the COMSTAR international Internet network is connected to the global Internet network in several major nodes in London, Stockholm, Amsterdam, Frankfurt, Paris, Los Angeles and New York.