Intel to Help Develop Mobile Wimax in Russia

[Digital Puppy]

Comstar and Intel to Develop First Mobile Wimax Network in Russia

MOSCOW -- Dec. 11, 2007 "COMSTAR - United TeleSystems" JSC ("Comstar" or "the Company") (LSE:CMST), the leading combined telecommunications operator in Russia and the CIS, today announced that it has signed an agreement with Intel, the world leader in silicon innovation, to jointly develop the first mobile WiMAX network in Russia.

According to the terms of the agreement, Comstar and Intel will initially focus on launching a WiMAX network in the Moscow region as it is the best suited area in Russia for adopting the new wireless communications technologies. The network is expected to be launched by the end of 2008, using the IEEE 802.16e standard (2.5-2.7 Ghz range). The network will cover the whole city. Intel will provide the client technical devices with embedded WiMAX solutions.

Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: "We are very enthusiastic about our collaboration with Intel. By combining our efforts we plan to substantially increase the availability of mobile wireless communications for our subscribers and provide the efficient Internet access for all clients at any place. The cooperation with Intel will strengthen our leading position in the broadband market."

Intel is currently developing embedded mobile WiMAX solutions for notebook PCs and ultra mobile and mobile Internet devices. In the middle of 2008, the company is expected to launch its first embedded mobile WiMAX/Wi-Fi module, codenamed "Echo Peak" with its next-generation Intel(R) Centrino(R) processor technology for notebooks and ultra-mobile devices. A solution optimized for mobile Internet devices with low power consumption, codenamed "Baxter Peak," is also expected to be available next year.

Sriram Viswanathan, Vice President of Intel Capital and General Manager of Intel WiMAX Program Office, added: "The effort between Comstar and Intel to bring mobile WiMAX to the people of Russia underscores the cost, performance and capability of this technology to give people a truly mobile Internet experience. The commitment to build mobile WiMAX networks continues to grow globally and we expect to see initial deployments in a number of markets starting in 2008 and growing throughout 2009 and beyond."

Mobile WiMAX is a broadband wireless technology that provides low cost multi-megabit speed with greater throughput for accessing large amounts of data, such as movies and multi-media content.

Intel will continue to cooperate with global manufacturers to develop and test notebook PCs and mobile devices to work with mobile WiMAX networks. A number of PC and device manufacturers have already expressed intent to embed these solutions into systems next year and more are expected in the next several months.

Dmitry Konash, Regional Manager of Intel in the CIS, commented: "The strategic collaboration with one of Russia's telecom leaders, Comstar UTS, ensures that WiMAX will be successfully developed in Russia. According to our agreement, our companies will work together to implement the joint marketing programmes to develop mobile WiMAX-based solutions not only in Moscow, but also in other cities and regions of Russia."

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

Comstar UTS is the leading fixed-line telecommunications company in Moscow, both in terms of revenues and subscribers. Comstar UTS provides voice, data, Internet, pay-TV and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and exclusive last mile access to 98% of Moscow households. The Company also offers communications services in five Russian regions and certain CIS countries. Comstar had 3.6 million residential subscribers in Moscow, 452,600 broadband internet subscribers in Moscow, 108,600 corporate subscribers in Moscow, and approximately 94,100 regional and international subscribers, as at September 30, 2007. Comstar UTS reported operating revenues of US$ 1,080 million and a 43% OIBDA margin for the nine months ended September 30, 2007. Comstar GDRs are listed under the symbol "CMST" on the London Stock Exchange.

Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at http://www.intel.com/pressroom and blogs.intel.com.

[HONkUS]

Great now even Russia is passing us up in internet tech. Robert McNamara is rolling over in his grave right now. (or atleast he would be if he was dead)