Comstar Completes Building First WiMAX Network in Armenia

The wireless broadband network, based on the 802.16e standard, consists of 24 base stations which are connected to each other via radio relay lines and rented telecommunications channels. Airspan Networks (US) has provided network equipment. The 3.6-3.8 GHz frequency range was allocated for the network on the territory of 9 regions of the Republic of Armenia. The network has a high data transmission capacity and enables the provision of a full range of telecommunications services, such as data transmission, digital telephony, high speed internet access, conference calling, creating virtual private networks (IP VPN), for residential and corporate subscribers.

Victor Koresh, Vice President of Comstar for Regional Development, commented: "We have implemented the first part of our strategic project aimed at expanding our presence in Armenia. The next step involves the development of the voice services in the Republic. Earlier this year, Cornet-AM applied to the Public Service Regulation Committee of the Republic of Armenia to obtain the numbering capacity of 60,000 telephone numbers".

For further information, please visit www.comstar-uts.com

Comstar UTS is the leading fixed-line telecommunications company in Moscow. Comstar provides voice, data, television and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and exclusive last mile access to 97% of Moscow households. The Company also offers communications services in five Russian regions, Armenia and Ukraine. Comstar had 3.6 million residential subscribers and 750 thousand residential broadband internet subscribers in Moscow, as well as 40 thousand residential regional and international broadband internet subscribers at the end of March 2008. Comstar generated US$ 1,562.4 million and US$ 417.0 million of revenues and a 42.5% and 40.8% OIBDA margin for the twelve months ended December 31, 2007 and the three months ended March 31, 2008, respectively. Comstar's Global Depositary Receipts are listed on the London Stock Exchange (ticker: CMST).

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Comstar UTS. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms or other similar expressions. Comstar UTS wishes to caution that these statements are only predictions, and that actual events or results may differ materially. Comstar UTS does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Comstar UTS, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Comstar UTS operates in, as well as many other risks specifically related to Comstar UTS and its operations.

SOURCE: COMSTAR

Comstar UTS Masha Eliseeva Tel: +7 985 997 0852 ir@comstar-uts.ru or Shared Value Limited Matthew Hooper Tel. +44 (0) 20 7321 5010 comstar@sharedvalue.net