On December 3, 2002 the management of the Kirov branch of VolgaTelecom held a press conference attended by journalists of the local mass media.  The announcement was made that the company's restructuring was completed on December 1, 2002, which is pursuant to the merger with OJSC VolgaTelecom.  The decision to proceed to the merger was adopted at the shareholders meeting on October 22, 2001.  

As a result of the merger between OJSC Kirovelektrosvyaz and OJSC VolgaTelecom, the former is to be delisted from the list of legal entities which are natural monopoly holders in the Kirov Region.  OJSC VolgaTelecom is the legal successor to all the rights and obligations of OJSC Kirovelektrosvyaz and will continue to provide telecommunications services as usual in the Kirov Region.  

"For many years we have been proud to operate as Kirovelektrosvyaz and of course we are a bit sad to part with our old brand name.  However, VolgaTelecom is a leading telecom provider in the Volga Region.  Merging our brands will allow the Kirov branch to enhance its image and the quality of services provided.  It will also enable us get a foothold on the European and CIS market.  The restructuring will also provide us with the opportunity to refurbish our technology and lower the cost of purchasing new equipment wholesale through VolgaTelecom", said Valery Popovsky, director of the Kirov branch of OJSC VolgaTelecom to journalists at the conference. "Moreover, following the merger the market capital of OJSC VolgaTelecom will go up nearly 200%.  This is the precisely the type of index that will be of interest to investors and large shareholders". 

"The quality services rendered by OJSC VolgaTelecom has also rubbed off on our company - as for the first time in years the largest operator in the Kirov Region has begun to service VIP clients", according to Dmitry Proskura, vice director of marketing and value added services of the Kirov branch.  

On November 22, 2002 a long-term partnership agreement was signed between  OJSC VolgaTelecom and Volgo-Vyatsky Sberbank of Russia.  The agreement stipulates that Volgo-Vyatsky Sberbank of Russia shall be the main strategic partner of OJSC VolgaTelecom in terms of billing services, long-term investment and credit solutions, foreign economic activity, etc.  

Contact details:

Press Department of Kirov Branch of OJSC VolgaTelecom

Tel. 35-95-42 Fax 62-12-46 (reception)
Voice mail: 340-911
e-mail: pr@elsv.kirov.ru
Internet Address: www.elsv.kirov.ru