March 9, 2009, Moscow, Sochi. COMSTAR – United TeleSystems (COMSTAR-UTS JSC, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, has won the tender for integrated telecommunication services in offices of state-owned Olimpstroy corporation in the city of Sochi.

Under this project COMSTAR-UTS will build a fiber-optic VPN with the capacity of 10 Mbps for two Olimpstroy's offices in Sochi as well as distribution network in one of the corporation-owned buildings. COMSTAR-UTS will also provide Internet, and local and long-haul telephone services.

Besides, COMSTAR-UTS intends to deliver telephony and Internet services in Olimpstroy’s office in Krasnaya Polyana tourist area. At present, COMSTAR-UTS enhances its transport network capacity between Sochi and Adler, and is completing the building of STM-1 level microwave link.

Vladimir Mamay, Director of COMSTAR-UTS South, underlines, "Today, Sochi is one of the top-priority regions for the whole country as in six years the city will see the Olympic Games. We believe that providing the Olympic Games capital citizens and visitors with high-quality communication, Internet and cable TV services is a critical task. And we have all the capabilities to solve it."

Telecommunication services in Sochi, in particular, including fixed-line telephony, Internet and leased-line services, are delivered by a branch of COMSTAR-UTS South which is also developing Wi-Fi services by arranging hot spots in hotels, shopping and business centers of the city. By September 2008 COMSTAR-UTS had completed the communication network that comprises 50 Wi-Fi hot spots in the most famous Sochi hotel – Zhemchuzhina. Similar Wi-Fi networks have been also built in other top hotels of Sochi as well as in airport terminals in Adler. In addition, COMSTAR-UTS is arranging microwave and fiber-optic communication channels in Adler and Krasnaya Polyana recreation area directions. The company also operates in the segment of recently-developed residential buildings, primarily of economy class, intended for Sochi dwellers. Apart from this, the multimedia FTTB network is being deployed in the center of Sochi to deliver telephony, Internet and cable TV.