February 25, 2008, Moscow: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announces that Moscow City Telephone Network (MGTS), a member of COMSTAR-UTS, has launched interactive digital Internet TV services (IPTV). MGTS provides IPTV services as an agent of COMSTAR.

In February MGTS, the largest Moscow telecom operator, entered Pay TV market with a new packaged service – Internet+TV. Subscribers of the company now have a chance to connect to broadband Internet provided by MGTS and to digital high-quality interactive television provided by COMSTAR (STREAM brand). Now they have at their disposal all Russian air broadcast channels and more than 80 major foreign TV channels in high-quality digital format. Apart from this, MGTS subscribers now have access to all value-added services, such as Video-on-Demand, Cinema Library, Electronic TV Guide, Radio, and Karaoke.

“Last autumn we announced the introduction of two-segment sales and service model in Moscow broadband market, under which MGTS provides the services for mass user, whereas COMSTAR does the same for the market premium segment. We believe that today the service of digital interactive TV is becoming more popular and wide-spread in Moscow, i.e. it is entering mass market, so we’ve decided to offer it to the Internet users of MGTS. This will make it possible to shape a comprehensive and convenient service for the Muscovites,” says Sergey Pridantsev, President of COMSTAR-UTS and the Chairman of MGTS Director Board. “A major step was made, which enhances synergy of COMSTAR-UTS Group companies and strengthens our position in the market,” he added.

Each user can independently shape personal set of services, subscribe to value-added services, and manage them via remote control unit. Lock menu enables restrictions for the list of services available for specific family members, limiting unauthorized attempt to alter the subscription details.

Sergey Nazarov, MGTS General Director pointed out, “The major goal of client-oriented company is to provide attractive and convenient services to its subscribers. The research made by our company shows that many Muscovites using Internet access of MGTS or just planning to subscribe to this service would like to have an option of watching digital TV. Using the advantages of COMSTAR-UTS we’ve started to provide IPTV packaged with broadband Internet.”