June 10, 2009, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication solutions in Russia and the CIS, has topped the National Procurements Transparency Rating 2008 of corporate customers with a score of 100 out of 100 and Guaranteed Transparency rank.

The annual National Procurements Transparency Rating is published by the National E-Commerce Association and supported by the Ministry of Economic Development of the Russian Federation and Federal Antimonopoly Service. In 2007 COMSTAR-UTS also ranked number one with the Guaranteed Transparency award among corporate purchasers.

Moscow City Telephone Network, COMSTAR-UTS’ associated company, has also been listed in the Rating with 85 scores and High Transparency rank in the Corporate Customers category.

Alexey Goncharuk, Senior Vice President of COMSTAR-UTS, says “With online bids the Group can enhance the transparency of its business and optimize the procurement price which is especially important in unstable market conditions. We use this business model to purchase products and services. The highest rank in the Rating confirms our openness and transparency of tender procedures.”

In 2008 COMSTAR-UTS held 55 Dutch auctions. Total volume of COMSTAR-UTS procurements through online bidding system amounted to approximately 640.5 million rubles. Average saving due to decrease in price during bids was over 11%. COMSTAR-UTS held tenders for hardware, components and consumables for computers and office equipment, server hardware, air-conditioning systems, cable products, tools, mounting devices and materials, paper and office supplies, souvenirs, household goods and special food, construction materials, transport and building assessment services.

The National Procurements Transparency Rating is non-government independent social project of civilian control of purchasing by state and corporate institutions. The project was launched 3 years ago. Since 2006 it has been constantly evaluating the market of government and corporate purchases and annually issues the transparency rating for the largest purchasers.

For reference: online auction business model is one in which participants bid for products or services by decreasing (or increasing) the price. It is possible to submit multiple bids. The participant with the lowest (or highest) price bid wins. Online bids attract both customers and suppliers, enhance product range, provide efficient and transparent competitive environment, reduce time between purchase reporting and contract sighing, and make it possible to adjust the product price in any time.