Shares of OJSC "Kyrgyztelecom" have been entered into trade lists of KASE

/KASE, Nov.10, 99/ - On November 9 of this year by the decision of the Exchange's board of KASE common inscribed shares of OJSC "Kyrgyztelecom" (Bishkek, Kyrgyzstan) have been entered into the sector of "Non-listing securities" with the second level of admittance. The shares were assigned a trade code - KGTK. OJSC "Kyrgyztelecom" was established in February of 1994 by the resolution of the government of Kyrgyzstan as State enterprise "Kyrgyztelecom". In June 1997 at the first step of privatization Joint stock company of open type "Kyrgyztelecom" was established on the basis of abovementioned State enterprise, which was reregistered into open joint stock company "Kyrgyztelecom" on December 16, 1998. Authorized capital of the company is 620,008,600 soms (as of January 1, 99 - $21.16 mln). Within the second stage of privatization open tender is to be held among strategic investors, where 40% of 77.84% state owned shares will be sold. 37.84% of shares will remain with the state until a special decision is made by the government. OJSC "Kyrgyztelecom" has 13 branches across the country. Number of employees - 6,380. The company owns 50% of shares of small enterprise "Azia-Info" (Bishkek, Kyrgyzstan) and 45% of shares of "BITEL" (Bishkek, Kyrgyzstan). OJSC "Kyrgyztelecom" is the monopolist operator of long distance and international communication lines under the license of NCA until year 2008. As in most former Soviet republics, the network of the company has hierarchical structure with primary, secondary and local networks. Primary network makes a communication infrastructure of cable, radio relay, satellite and microwave lines. This network covers all regions of Kyrgyzstan and links them with international networks by multichannel long range communication equipment. Secondary network includes the equipment, which provides links between long distance stations to ATS (Automated Telephone Stations), where all subscribers are connected directly. Local telephone networks are build upon radial-hub principle. In Bishkek and other big regional centers radial-hub network architecture with hubs of incoming and outgoing automated commutations. At the end of 1998 OJSC "Kyrgyztelecom" had 571 telephone stations, with city stations accounting for about 93% of total number. Total capacity reached 469,228 lines. Among all available lines about 60,000 are digital and have been set up in last two years. Most of the equipment is manufactured in Ukraine. Almost two thirds of all communication equipment is the stations of coordinate type. Other than direct investments into its property, OJSC "Kyrgyztelecom" makes long term investments into the development of modern communication services: cellular, data transfer, Internet and others. Development of the company is abovementioned directions allows to use the current equipment to transfer the data, which leads to an increase in income and profits. Modernization and reconstruction of long distance and international networks by the company contributed to the growth in telephone traffic, which amounted to 29.68 mln minutes on international lines in 1998, and 25.02 mln minutes on long distance lines. OJSC "Kyrgyztelecom" continues to work on the construction of Trans- Asian-European fiber optic communication line (TAE). The construction is completed by 35%, $844.8 thousand has been used. The construction of TAE segment in Kyrgyzstan allows the country to join in the modern international communication systems. The project was finished in 1997 and presently the equipment is tested. TAE directly connects Shanghai (China) and Frankfurt (Germany) and passes through Germany, Poland, Turkey, Iran, Kyrgyzstan, Uzbekistan, Kazakhstan and China. Total length of TAE is 27,000 km, the length of Kyrgyzstan segment is about 183 km. International communications will be made through Synchronic Digital Hierarchy (SDH) transmission lines with capacity of 7,680 channels (622 Mb/sec). Transmission systems in administrative and regional centers will have the capacity of 1,920 channels (155 Mb/sec). New fiber optic line will become a foundation for project of modernizing telecommunication lines in this region. Based on the project, digital telecommunication network will be created in Chu region, with a total of 44,000 lines. According to the data of the prospectus, OJSC "Kyrgyztelecom" received an auditing report of "Ernst & Young" for 1997. Presently, auditing is conducted by "Price Waterhouse Coopers" for 1998. Based on financial statements, submitted to KASE, in 1996-1997 the company was profitable, by the results of 1998 it suffered losses. Shares of the company (first issue - KG0101093316, second issue - KG0101093315) were entered into trade lists of Kyrgyz stock exchange (second listing category) on May 25, 1998. From May 25, 98 through August 20, 99 183 deals were made with them for a total of 8,941,665.70 soms. From the beginning of the circulation on the stock exchange maximum price of a share reached 23.00 soms, minimum - 3.00 soms. Fund for State Property of Kyrgyzstan (Bishkek, Kyrgyzstan) owns 77.84% of the shares; 12.51% - Social fund of the republic (Bishkek, Kyrgyzstan); 5.00% - employees of the company; 3.65% - the public (through coupon auctions). By the resolution of the National Securities Commission of Kazakhstan #2, dated November 4, 1999, shares of OJSC "Kyrgyztelecom" are allowed to circulate on the territory of Kazakhstan.