ARMENTEL COMPANY CONSIDERS THE CONTRACT CONCLUDED WITH ITS COMPETITOR MUTUALLY BENEFICIAL

YEREVAN, MAY 18. ARMINFO. Vasilios Fetsis ArmenTel CEO informs ARMINFO
that they consider the contract signed in Yerevan between ArmenTel
and K-Telecom on interconnection of mobile communication networks as
balanced and beneficial document for both operators.

V. Fetsis mentioned that although negotiations proceeded few months
ArmenTel company highly appreciates the role and position of the
regulating body in the negotiation process as the later did not
rush to intervene and impose a solution, but gave to the parties
the possibility to conduct negotiations and conclude a commercial
agreement without state intervention.

It should be noted that the contract signed on May 16 between ArmenTel
and K- Telecom on interconnection of mobile communication networks,
regulates all legal relations of both operators. Besides, it is
noteworthy that in 2005 the investments of the ArmenTel in development
of the telecommunication market of Armenia are to make up 50 mln EURO,
including 20 mln EURO in development of mobile communication network.