ARMENTEL TO BUILD NEW TELEPHONE USERS SYSTEM IN GYUMRI

ARMENPRESS
Apr 27 2007

YEREVAN, APRIL 27, ARMENPRESS: ArmenTel telephone operator said
yesterday it has launched construction of a modern telephone subscriber
system in Armenia’s second largest town of Gyumri in the northwestern
province of Shirak. The Russia-owned company described this project as
‘strategic,’ saying it will embrace over 20,000 fixed telephone users.

A press release by the company said the upgraded system will allow
city residents to make use of modern communications services. The
project will be accomplished in two stages-the first will end by the
end of this year with construction of the system and a year later a
modern Alcatel system will be commissioned to allow servicing 32,000
subscribers.

Russian Vimpelcom announced earlier this month the closing of
the transaction to acquire 10% of the shares of ArmenTel from the
government of Armenia to raise its equity holding in the company
to 100%.

The Russian firm paid approximately EUR38.6 million for the outstanding
shares, constituting one-ninth of the final price paid by Vimpelcom
for the other 90%, acquired in November 2006. In addition, the Russian
cellco will pay an amount representing 10% of the retained net profit
of ArmenTel for the interim period November 2006 – April 2007.

ArmenTel holds the exclusive right in fixed telephone services and
has also about 400,000 mobile phone subscribers.