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| 17:30:45 | 23-06-2005 | Social |

KARABAKH TELECOM CONNECTED AT LAST

Today leaders of Karabakh Telecom Company, the second operator of cellular
communication in Armenia rendered a press conference in the House Museum of
Sergey Parajanov. To note, Lebanese Ambassador to Armenia Gabriel Geara was
also present at the press conference.

Member of the Board of Directors Husseyn Rifayi, who will work in Armenia
explained why the meeting was organized in the House Museum of Parajanov.
`Fatush Group, the founder of our company is fond of traditions and culture,
that is why we decided to hold our first press conference here’, he said.

He also reported that well-off Lebanese citizen Pierre Fatush has already
invested $75 million in the establishment of cellular communications, what
is a considerable sum for the Armenian economy. Why does he do all this? `He
was born in a town, where many rich Armenians lived and he loved them’, his
colleagues said.

Husseyn Rifayi promised a top -level service. Beginning with July 1 the
second operator will enter the Armenian market and slogan `Viva Sell’ (what
means Your Choice) will appear on the screen of the subscribers’ phones.

The new operator suggests two kinds of service – subscriber’s cards and
prepaid cards. Ralph Yirikian, the Executive Director of the Company did not
mention of tariffs today, promising inform about the details June 28-29. It
should be also noted that the prepaid cards `ALO’ will be in free sale like
the Armentel cards and will function according to analogous principle.

Karabakh Telecom has 140 employees in Armenia. From July 1 the company will
service 300 000 subscribers. First it will cover Yerevan, Armavir and Ararat
as well as some regions of Aragatsotn, Kotayk and Gegharkunik.

Ralph Yirikian also informed that the company will provide sms service,
voice mail, GPRS and roaming.

To note, the administration of K-Telecom informed that the incoming calls
will be free.