On February 24, 2005, Sibirtelecom’s subsidiary company Eniseytelecom bought from MCT Corp. 59.7% of stock of Altaisvyaz operator which provides cellular communications services (GSM-1800 standard) in the Altai Territory and the Republic of Altai.

The acquisition of controlling stock of the Altaisvyaz has become another stage in the implementation of the cellular business development strategy of Sibirtelecom. Previously, in 2003, the company increased its shares in Eniseytelecom in the Krasnoyarsk Territory and Baikalwestcom in the Irkutsk Region up to 100%, and in 2004, – in Sayan Telecom in the Republic of Khakassia. In 2004, Sibirtelecom’s subsidiary cellular company – STeK GSM – started providing its services on the territory of Kemerovo Region.

In accordance with its cellular business development strategy, by the end of 2006, Sibirtelecom plans to complete the implementation of convergent services based on the intellectual platform and a single billing system for each cellular subsidiary. In the meantime, by the end of 2005, it plans to establish uniform through tariffs and integrated roaming space.

Considering the latest acquisition, Sibirtelecom’s cellular business covers 75% of the territory of the Siberian Federal District, with the population of the licensed regions over 13 million.

The financial terms of the deal are not disclosed.

Sibirtelecom (RTS: ENCO/ENCOP, ENCOG/ENCOPG; MICEX: STKM/STKMP; OTC, USA: SBTLY) is the largest telecommunications operator in Siberia. The company services over 3.8 million fixed-line communications subscribers. The number of GSM cell phone customers serviced by the Company’s subsidiaries and its regional branch is over 1.05 mln (as of February, 2005). The main shareholder is Svyazinvest (50,67% of the Company’s equity stock).

Eniseytelecom is the leading cellular operator in the Krasnoyarsk Territory. The number of its GSM subscribers is over 550 thousand (as of February 2005). The company holds 100% of stock of Sayan Telecom – a GSM-900 operator in the Republic of Khakassia (with over 20 thousand subscribers). The shareholder of Eniseytelecom is Sibirtelecom (100% of stock).

Altaisvyaz is a cellular operator of the GSM-1800, AMPS-800 standards in the Altai Territory and of the GSM-1800 standard in the Republic of Altai. The number of its GSM subscribers is over 38 thousand. The operator also provides line telephony services and Internet access. The shareholders: 59.7% – Eniseytelecom, 25.1% – Property Fund of the Altai Territory, 15.2% – natural person.

MCT Corp. is a US corporation providing cellular services in Russia and Central Asia via a network of joint ventures.

Public Relations Department
Sibirtelecom
+7 (3832)191-567
shibanov@sibirtelecom.ru