/KASE, February 21, 07/ - Kazakhtelecom JSC (Astana), shares of which are traded in Kazakhstan stock exchange's (KASE) official "А" listing category, today spread a press release of the following content:

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On February 21, 2007 in Kazakhstan Press-club a press conference took place, at which a new operator of the cellular communication of GSN standard was officially introduced, the company Mobile Telecom-Service LLP with the trademark NEO.

Mobile Telecom-Service is a 100% daughter organization of Kazakhtelecom JSC.

"Opening of NEO network, a new GSM-operator is one of the most significant events for the Kazakhstani market of the mobile communication," stated Askar Dostiyarov, a Chairman of the Board of directors of Mobile Telecom-Service LLP.

At the present time the company covers with its network 30 cities of Kazakhstan. The network expansion is run rapidly. By the end of 2007 the company plans to provide with the communication 87 cities and population centers of Kazakhstan.

Equipment of a famous company Eriksson, which for the first time delivers solution Mobile Softswitch in Kazakhstan, was installed in the up-to-date high-technology network of the operator, which maintains the standards GSM, GPRS, EDGE. This technology will allow providing the high quality of voice services, decrease expenses for network maintenance and will prepare it to a subsequent evolution to communication networks of the third generation - 3G.

Potentially network capacities are calculated on 1.2 million of telephone subscribers. Own IP-transport network is installed in the network. Until the end of 2007 investments, devoted for the network development, will be directed to setting 800 base stations. A substantial expansion of commutation capacity is assumed. A special emphasis will be placed on the development of new services and introduction of perspective technologies. It is forecasted that the number of subscribers of the network NEO by the end of the current year will reach 700 thousand.

"The company intends to offer to subscribers an optimal balance of price, quality and technological newness of services. Truly, a new operator appeared in Kazakhstan, the network of which uses the most advanced equipment, and the set and quality of services corresponds to the best world standards of the mobile communication," summed up Haluk Ege, the Director of Mobile Telecom-Service LLP.

The company offers beneficial tariffs and unique services to its subscribers. The evident advantages of the network NEO are:

• absence of the subscription fee
• the most beneficial tariff plans
• the full range of mobile communication services (GPRS, WAP, MMS, EDGE)
• entertainment services

Mobile Telecom-Service for the first time in the Kazakhstan market of the cellular communication offers services of the mobile IP-telephony, which allows substantially save on international calls. With the coming of our company IP-telephony is available not only with the availability of a fixed phone. Now you can use services Internet-telephony around Kazakhstan, where there is coverage of the network of Mobile Telecom-Service. Also the common international communication, offered by Kazakhtelecom JSC, is available for our subscribers.

Service of convergent billing offers to our subscribers an opportunity to optimize their expenses on the mobile communication and substantially simplified the process of funds control. The service "Effective time", offered to our corporate clients, will allow them to pay for communication service of their colleagues only in the working time. Corporate clients can pay for their private conversations according to reduced corporate charges.

In honor of its opening Mobile Telecom-Service announces an unexampled action - calls around Kazakhstan and around the world at a sensational price - 32 KZT (taking into account VAT) per minute.

Currently this is the best price offer in the market, since even price of calls around Kazakhstan, offered by our company, to 30% lower (depending on the call direction) than that of other cellular operators. Price in KZT 32 for international calls is even more unprecedented for the Kazakhstan market. This action will last till the end of March of the current year. Afterwards, the company intends to offer to its subscribers tariff plans, according to which discounts are provided on broadcasting time, on Internet usage to 20% (depending on the service type) of the afore-mentioned sensational price at 32 KZT!

The company intends to conduct the flexible and transparent tariff policy, which will allow taking into account needs of all groups of subscribers and effectively respond to their changes.

Welcome to NEO!

Contacts: PR-manager Zaure Masgutova Phone: +7 707 211 07 10, Email: zaure.masgutova@mtelecom.kz

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[2007-02-21]