Comstar-UTS Selects New NDS Master UI™ to Enrich IPTV in Russia

Media Center: Press Release

Comstar-UTS Selects New NDS Master UI™ to Enrich IPTV in Russia

Highlights:

Leading Russian pay-TV provider Comstar-UTS has chosen NDS Master UI™ (MUI), a new design concept in user interfaces that transforms the TV viewing experience, to enhance its IPTV service for Russia
MUI offers viewers ease-of-use, simplicity, accessibility and consistency across devices
The new user interface is set to play a key role in attracting and retaining subscribers as Comstar-UTS bids to become IPTV leader in the Russian market
Comstar-UTS is additionally deploying NDS content protection technology across Russia

LONDON, UK – March 16, 2009 – NDS, the leading provider of technology solutions for digital pay-TV, today announced that COMSTAR-United TeleSystems (COMSTAR-UTS OJSC, LSE: CMST), a major operator of integrated telecommunications services in Russia and the CIS under the STREAM brand, is the first customer to deploy NDS Master UI™, a highly intuitive user interface that transforms the way content and features are presented on screen and enhances the way users interact with them. Comstar-UTS has also selected NDS IPTV content protection as it aims to become leader in the Russian pay-TV market.

Comstar-UTS is a subsidiary of Sistema, Russia’s largest public diversified corporation. Comstar-UTS has more than 147,000 double-play subscribers in Moscow for its STREAM branded pay-TV channels. From January 2009, these IPTV subscribers are the first to use the new NDS MUI interface before it is rolled out nationwide.

In July 2008, Sistema Mass Media (SMM), another sister operator, selected the NDS Unified Headend™ to manage and protect TV content delivery to subscribers across both IP and DVB-H mobile TV networks. SMM’s deployment also included choosing VideoGuard Mobile™, NDS’ secure mobile TV solution, part of the NDS Unified Headend, to protect its mobile TV service.

“As the choice of TV content and features multiplies, finding, managing and accessing that content has become more challenging,” said Victor Belov, Director, Service Platforms and Networks, Comstar-UTS. “We want to make our IPTV service intuitive and easy-to-use, and we believe that NDS Master UI will make our service more attractive to subscribers and allow us to offer more revenue-generating features in the future.”

“NDS has been working with STREAM for many years and Master UI is the latest user interface design from NDS to complement the leading edge, fresh new look and feel for Comstar-UTS’ TV services,” said Jeremy Maddocks, NDS Regional Director, Russia. “Today in Russia, customers demand the best and Master UI demonstrates NDS’ commitment to deliver world leading design to the highly competitive Russian market.”

NDS MUI design is for the world of convergence where viewers move, store and manage content on multiple devices while benefitting from the seamless experience made possible by a consistent interface look and feel across STBs, mobile devices and PCs.

With MUI, Comstar-UTS’ customers can choose their graphical theme or colour schemes and contrasts according to personal taste. Full screen transparent animated overlays allow viewers to continue to watch full-screen TV as they browse for content and services. MUI also offers graphics designed for the visually impaired.

In addition to pay-TV broadcasters, the MUI design can also benefit manufacturers of free-to-air set-top boxes who can use MUI’s superior interface to differentiate their products.

The NDS MUI design enables broadcasters and operators to add new features to their offerings in the knowledge that viewers will easily find and use these services. Its design allows the introduction of new marketing programmes such as cross-device promotion and packaging. Its personalisation services pave the way for operators to deliver targeted communications and subscriber promotions, as well as facilitating new revenue-generating options for advertisers and broadcasters. By making the TV experience intuitive, MUI also helps to reduce an operator’s call centre costs.

With MUI, the user experience is at the centre, and it represents a whole new way for people to interact with content. Ease-of-use, consistency and accessibility are always the touchstones for NDS designers.

To roll out the new interface to subscribers, Comstar-UTS only needs to send a software upgrade over the air to customers’ STBs. MUI uses content that already exists in their programming databases and enhances it with additional details - such as biographical information on actors, with pictures and graphics - resulting in a richer user experience.

Existing Comstar-UTS IPTV subscribers in Moscow were first to experience the new MUI interface from January 2009. It is to be rolled out to other regions across Russia. Comstar-UTS has integrated NDS MUI into its IPTV service in cooperation with interactive TV software developer, SmartLabs LLC.

Comstar-UTS has also chosen NDS content protection to securely deliver content over its IP network to broadband and TV subscribers. The service provides Russian users with advanced broadband entertainment services, including interactive TV services, video on demand and interactive applications such as games.

At the IPTV World Forum conference, Victor Belov will speak about Comstar-UTS’s IPTV business. (13.45, Friday, 27 March 2009, Olympia, London).

To view images of NDS MUI, please visit http://redesign.il.nds.com/press_releases/Comstar-UTS_images.html.

About Comstar-UTS
JSC Comstar-United TeleSystems 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 97% of Moscow households. In addition, the Company offers communications services in five Russian regions and also in Armenia and Ukraine. As at the end of 3Q2008, Comstar had 3.6 million residential subscribers in Moscow and 793k Internet broadband access residential subscribers (BBA), as well as 61k BBA residential subscribers in Russia’s regions and the CIS. The Group reported consolidated revenues of US$1,225,800, with OIBDA margin of 41.8% for the first 9 months of 2008. Comstar GDRs are listed under the symbol "CMST" on the London Stock Exchange and Moscow Central Stock Exchange. For more information please visit: www.comstar-uts.ru, www.comstar-direct.ru.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of COMSTAR – UTS. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that the actual events or results may differ materially. COMSTAR – UTS does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to COMSTAR – UTS and its operations.

About NDS
NDS Group Ltd. creates the technologies and applications that enable pay-TV operators to securely deliver digital content to TV STBs (set-top boxes), DVRs (digital video recorders), PCs, mobiles and other multimedia devices. Over 70 of the world’s leading pay-TV platforms rely on NDS solutions to protect and enhance their businesses.

VideoGuard® is the world’s market-leading conditional access (CA) and digital rights management (DRM) technology, currently deployed on more than 99 million active devices, and safeguarding pay-TV service revenues exceeding $40 billion. NDS middleware, including MediaHighway® which enables a host of advanced services for subscribers, has been deployed on 108 million devices. NDS DVR technology, centred around XTV®, leads the global industry with 17 million units deployed. (Deployment figures as of 31st December 2008)

Headquartered in the UK, NDS remains committed to investing in R&D with over 75% of its employees dedicated to pioneering work at development centres in China, Denmark, France, India, Israel, Korea and US. NDS has also implemented a host of initiatives aimed at reducing its carbon footprint and helping digital TV subscribers reduce energy consumption.

NDS Group Ltd. is a private company owned by the Permira Funds and News Corporation. See www.nds.com for more information.

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For further information:

NDS
Cynthia Ritchie	T: +44 (0)20 8476 8378
Director, Corporate Communications	critchie@nds.com

Anastasia Svrividova	T: +7 495 643 98 97
Marketing and Development Director	asviridova@nds.com

Breakaway Communications for NDS	T: + 1 212 616 6006
Kelly Fitzgerald, Managing Partner	kfitz@breakawaycom.com

Comstar-UTS	T: +7 495 950 0254
Ekaterina Nevskaya, Нead of Press Office	pr@comstar-uts.ru