RUSSIAN “SYSTEM” AFC TO SHOW INTEREST IN ARMENTEL

Yerevan, April 10. ArmInfo. “The “Telecom System” CJSC, which
enters into the structure of the biggest Russian private non-charge
corporation “System” AFC, shows interest in the telecommunicational
assets in the CIS territory, including the Armenian “ArmenTel”
Company”, the Director for Public Relations of the “Telecom System”
Anna Boiko told to ArmInfo, having answered to the question about the
possible acquisition of 90% of shares of the Armenian phone monopolist
from the Greek OTE by the “System” AFC. However, she emphasized that
it is still earlier to tell about any specific plans with respect to
“ArmenTel”.

To be noted that the management of OTE has recently announced about the
readiness to sell its Armenian assets. The president of the “System”
AFC Alexander Goncharuk told in the recent interview to the Russian
“Vedomosti” newspaper that the Company will continue to enter the
former soviet republics’ market and almost all key divisions of the
Company must become important players in the CIS.

The “System” AFC was founded in 1973. At present, it owns and
controls the diversified portfolio of investments to the enterprises
of different economy branches, including telecommunications (MTS,
MGTS, “Comstar United Telesystems” and so on). The Ukrainian cell
operator UMS, telecommunicational assets in Byelorussia, Uzbekistan,
Turkmenia Kirgizia belong to the “System”. A consolidated gain of
the “System” AFC made up $5.4 bln for the first 9 months, 2005, 79%
of which falls to the share of the telecommunicational segment.