Holding Samruk JSC intends to offer 4.6% of KZ1C12280417 common shares of Kazakhtelecom JSC, being in its ownership, among unlimited number of physical entities - press release

/KASE, November 9, 06/ - The press service of Kazakhstan holding for management of assets Samruk JSC (Holding Samruk JSC) has spread today the press release, saying: Quotation start In compliance with the resolution of the government of republic of Kazakhstan dated October 17, 2006 under # 1001 "About selling of the part of shares of the joint stock company Kazakhtelecom" took a decision on offering of 4.6% voting shares of Kazakhtelecom JSC (hereinafter - the Company), which are in ownership of Holding Samruk JSC, on the domestic stock exchange market of Republic of Kazakhstan. Initiated arrangement is held for the practical purpose to actualize the Address of the President to population of Kazakhstan "The strategy of entry into top 50 countries of the world" and was targeted at reviving of the stock exchange market of the republic. Common inscribed shares are up for 497,597 copies, which make 4.6% out of the total number of the voting shares of the Company. Face value of one share is KZT1,000. Average market cost of one share by the results of trades on KASE in October of year 2006 is KZT29,000. The price scale of the real sales will be determined on the basis of the current market price taking into account offerings of the financial consultant. The selling of the voting shares of the Company is intended to accomplish among the population of republic of Kazakhstan by way of subscription to shares among the unlimited number of physical entities. The special attention will be drawn to questions of transparency of the selling process and accessibility of partaking of all sections of the population in that, including agricultural sector. Within the same purpose it is possible to introduce the restrictions for the number of shares to be sold to one person. * * * At the present time of being shares of the Company have been included in the official list of Kazakhstan stock exchange under "A" category. At that the part of shares, belonging to private shareholders of the company, is in the market under free circulation. In order to determine the objective market price and the ultimate conditions of shares selling, and in order to work out necessary legal documents of Holding Samruk JSC, financial juridical consultants will be called for. Direct procedures on accepting applications from the population, on concluding the deals with purchasers of shares and registration of their rights will be organized with use of services of transfer-agent - the professional actor of the securities market, who has the right for accepting, accounting and registration of documents from clients, correspondingly, in the person of the seller - Holding Samruk JSC and purchasers - physical entities. Currently Kazpost JSC has the most branchy department networks in the market of transfer-agency services (over 190 offices all around the territory of the republic, including oblast and regional centers). This company has the corresponding licenses. The price scale and other conditions of selling will be publicly announced at the beginning of December, 2006, afterwards within the period from 7 to 14 days the acceptance of applications from population will be accomplished. On the expiry of the given term cut-off of bids, which do not correspond to requirements of price and quantity levels, fixed for shares selling. Purchase and sale contracts will be concluded with interested persons, presented the optimal offering within levels of the fixed indicators. Reference: Kazakhtelecom JSC is the leader of telecommunication branch of the republic today, taking the top position on the market of fixed connection services. As one of the primary activities, the Company represents the services for all types of access to Internet networks and cell phones connection of CDMA standard on the basis of the daughter company - Altel JSC, and also of GSM standard on the basis of the daughter company - Mobil Telecom- Service LLP. Financial indicators by the results of year 2005: - the net income of Kazakhtelecom JSC by the results o year 2005 made KZT33,982,261 th.; - the size of dividends payment to shareholders - KZT5,571,322 th.; - the size of dividends per one share of the Company by the results of the year totaled KZT510.0. In all, 17% out of the net income was directed to dividends payments of the Company. Reasoning from results of activity of the Company by the results of 9 months the given indicators can be preserved. Successful activity of the connection operator was recognized by international publish house Euromoney, which named Kazakhtelecom JSC as the best telecommunication CIS company in year 2005. Shareholders with the part in holding of common shares of Kazakhtelecom JSC as of November 1, 2006 are: - Holding Samruk - 55.6% - BODAM B.V. - 16.9% - The Bank of New York - 10.2% - Сentral Аsian Industrial Holdings N.V. - 9.6% - Other - 7.7% Press service of Holding Samruk JSC 97 65 97, +7 701 214 07 97 Quotation end [2006-11-09]