May 12, 2009, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announces that on May 12, 2009, the company will launch wireless broadband Internet services based on mobile WIMAX in Moscow. During the initial stage, users will be able to subscribe to COMSTAR-WiMAX service in all sales and customer service outlets of STREAM and COMSTAR.

COMSTAR-UTS started construction of WiMAX wireless broadband network (IEEE 802.16e) in the middle of 2008. As of today, the network covers about 80% of the Moscow territory and comprises more than 170 base stations. COMSTAR-UTS has registered radio electronic equipment and obtained permissions to operate it according to the established procedure. The testing was completed on April 30, 2009. Network optimization, including installation of auxiliary equipment, as required, will continue throughout 2009. WiMAX service is being provided through the backbone transport network of COMSTAR-UTS in Moscow.

Sergey Pridantsev, President of COMSTAR-UTS, says: “In practice, commercial launch of mobile WiMAX network by COMSTAR-UTS has resulted in creation of a single seamless communication environment in Moscow. Now, the Internet is accessible nearly from any place in the capital using the whole range of fixed and wireless broadband technologies. This is a unique project for our country. Our service will be of great interest to many residents of Moscow. Still, we primarily intend to connect users who have laptops and who are subscribed to our broadband services.”

To get connected to this service, you will need to buy a WiMAX modem at a price of 4,600 rubles, and to enter into a service agreement with COMSTAR-UTS in one of STREAM or COMSTAR-UTS sales outlets (for addresses, please visit https://www.stream.ru/ and https://wimax.comstar.ru/). Currently, COMSTAR-UTS is holding negotiations concerning a possibility to sell COMSTAR-WiMAX product box in Moscow’s largest retail networks.

When subscribing to the service, you will have to pay a service fee for the first month, as WiMAX services are pre paid. Individuals in Moscow are served according to the following limited tariffs:

COMSTAR-UTS has also decided to introduce special rates for users of STREAM service:

Subscribers may pay for WiMAX service in e-port payment points.

Starting from May 12, following an official launch of WiMAX broadband Internet service, COMSTAR-UTS will launch an updated web site of the service, wimax.comstar.ru, where users may find all the project information they might need, download software, including Connection Manager, have a look at the coverage map and addresses of sales outlets.