January 25, 2008, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication services in Russia and the CIS, now offers digital communication services in one of residential areas of Zheleznodorozhny, a town located near Moscow.

COMSTAR-UTS has launched a communication node with the capacity of 3000 numbers in the Kupavna residential area. The operator has built a distribution network in a large housing estate and installed the node equipment and DSLAM switches. Moreover, in the near future, COMSTAR-UTS is going to open in Zheleznodorozhny sales and service office.

COMSTAR-UTS is planning to offer the residents the full range of digital services, local telephony and broadband Internet primarily.

This project is implemented under the agreement signed earlier with the Administration of Zheleznodorozhny to develop the communication services in the municipal area in order to solve social problems related to installation of telephone facilities, providing Internet access and development of a cable TV network as soon as possible.

“Today, high quality communication services and Internet access are crucial”, Evgeny Zhirkov, the Head of Zheleznodorozhny town district said. “With new communication node and office of COMSTAR-UTS, advanced telecommunication services and high quality customer service will be available to residents of Zheleznodorozhny. Hopefully, positive reaction of residents on the COMSTAR-UTS services will allow us to extend the range of services for the town in future.”

“The telecommunication market of the Moscow Region is one of COMSTAR-UTS’ priorities,” Dmitry Dronov, Director of the company's Moscow Region branch said, “Today, towns located around Moscow are undergoing the boom of residential development, and provision of communication services in the areas of mass development is the crucial factor of our company’s success.”