July 19, 2010, Moscow, Rostov-on-Don: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecom solutions in Russia and the CIS, announces that the Southern branch of COMSTAR-Regions (100% subsidiary of COMSTAR-UTS) has set upon upgrading its data transmission network and migrating to fiber-optic technologies in Taganrog, Rostov Region.

COMSTAR started to upgrade its telecom network in Taganrog in 2Q2010. The company plans to completely upgrade its transport network in 13 districts of the city and to replace the network infrastructure and equipment in 360 houses, where nearly 30,500 subscribers reside. These upgrading activities will result in a completely new technology used for signal delivery to end users, i.e. the company will migrate from DOCSIS (Data over Cable Service Interface Specifications) to more advanced FTTB (Fiber-to-the-Building) technology. This will bring about a considerable improvement in company’s service quality in Taganrog.

Presently, COMSTAR finishes its transport network installation. At the second stage that will be launched in August 2010, the company will replace the distribution infrastructure and network equipment in Taganrog houses currently connected to the COMSTAR network using DOCSIS technology.

“Network upgrade and migration to the new data transmission technology will provide our subscribers with access to high-quality and high-speed Internet and cable TV services. Besides, following the migration, subscribers of the DOCSIS network will be able to use additional services that have already become very popular in other cities of our presence, i.e. “Nochnoye uskoreniye”, “Turboknopka” as well as internal network resources,” Mikhail Monastyrsky, Director of the Southern branch of COMSTAR-Regions, says.

Southern branch of COMSTAR-Regions is engaged in implementation of the step-by-step program for development of the existing telecom networks in the Southern Federal District with an emphasis on advanced service delivery technologies and high quality. Over the last year, the operator has launched some new FTTB networks in various cities of the region. Thus, in June 2010, such network was commercially launched in Krasnodar (it has covered more than 9,500 apartments in 7 large districts of the city). Previously, an FTTB network covering 3,500 apartments was deployed in the Central District of Sochi.