Comstar-United Telesystems OJSC Financial Results For The Fourth Quarter and Full Year 2007

81% year on year growth in Moscow residential broadband internet subscriber base to 651,000, including 122,300 triple-play (voice + broadband internet + pay-TV) subscribers, and ARPU of US$ 17.5

COMSTAR – United TeleSystems OJSC (LSE: CMST), the leading integrated telecommunications operator in Russia and the CIS, today announced its unaudited consolidated US GAAP financial results for the fourth quarter and twelve months ended December 31, 2007.

Broadband Business in Moscow & the Regions

Comstar’s Moscow broadband subscriber base grew by 81% in 2007 to 695,000 customers, including 651,000 residential subscribers.

The selective modernization of the “last mile”, using “fiber to the curb” and ADSL 2+ technologies, provides existing subscribers with more bandwidth and the capacity to deliver high-speed Internet at 24 megabits per second, as well as to offer new value-added services such as High Definition Television. HDTV tests were launched in parts of Moscow after the end of the year in February 2008, with the full commercial launch of such new services on the modernized network anticipated in the summer of 2008.

Alternative Segment in Moscow (Comstar & Comstar-Direct)

Comstar owns a group of leading alternative fixed-line telecommunications operators in Moscow, which provide broadband internet and multi-service solutions to residential and corporate subscribers in Moscow and the Moscow region. This segment includes the Comstar-Direct and Comstar-Moscow operations, which were previously reported as separate business segments, but have been merged with effect from the fourth quarter of 2007 in line with the Group’s operational reorganization.

More: Q4 2007 Results Statement