ALCATEL TO PLACE ORDERS FOR DEVELOPMENT OF IT PROGRAMS IN ARMENIA

Interfax News Agency
Russia & CIS Business and Financial Newswire
April 19, 2006 Wednesday 3:15 PM MSK

France’s Alcatel plans to place large orders for the development of
information technologies programs in Armenia in 2006, Edgar Grigorian,
head of Alcatel’s representative office in Armenia, told Interfax.

Local IT companies plan to place orders for the development of programs
in mobile and stationary communications, he said. The placement of the
orders will contribute to the development of information technologies
in Armenia and the creation of new jobs in this sphere, he said.

Alcatel is currently studying the necessary amount of investment and
forms of cooperation with local companies. The company could set up
a joint venture or fully acquire an Armenian IT company, he said.

Alcatel has delivered more than $10 million worth of equipment to
Armenia. The bulk of the equipment was delivered in 2005, when Alcatel
signed a large contract on the construction of a network for the
Armenian mobile communications operator K-Telecom (trademark VivaCell).

The network was launched on July 1, 2005.