Purchase of NURSAT shares

On 4 May 2001 "Kazakhstan Telecommunications" (KATELCO) finished the transaction of purchasing 41,25% of NURSAT shares previously belonged to American Lucent Technologies.

NURSAT - is the leading private telecommunication operator in Kazakhstan, having its own satellite network of national scale with control center in Almaty. At present time telecommunication nodes of the network are located in 26 towns of the country and in Moscow. NURSAT provides full range of services: Internet access, e-business solutions, long distance and international telephone connections, Voice over IP, corporate networking with integration of "voice+data" services, digital data transmission circuits within Kazakhstan and abroad, videoconferencing. As for the end of the first quarter of 2001, NURSAT had more than 20 thousands Internet users and more than 200 corporate clients.

KATELCO's joining NURSAT shareholders is a splendid opportunity for both companies to widen the range of provided telecommunication services. This transaction will lead KATELCO to the position of the largest independent operator with respect of customer resources and range of provided services. Due to the consolidation of both operators' opportunities , NURSAT will be able to respond to the growing demands of Kazakhstani telecommunication market with more flexibility, and further strengthen its positions as the leading operator of integrated telecommunication services in Kazakhstan.