Moscow, Russian Federation — November 19, 2004 — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has won a government privatization tender for GSM mobile phone operator, Gorizont RT, working in the Republic of Sakha (Yakutia) in the Far East of Russia.
Today the Property Ministry of the Republic of Sakha (Yakutia) held an open auction for the government’s 76% stake in local mobile phone operator Gorizont RT. MTS won the auction with a bid of approximately $52.2 million. The sales and purchase agreement is expected to be signed shortly.
Gorizont RT is the sole mobile services provider in the Republic of Sakha (Yakutia), a region in the Russian Far East with a population of 949.3 thousand. The company provides services to 100 thousand subscribers. Mobile penetration in the region is at 10.5%, substantially lower than Russia’s average penetration of 42.5%.
According to the Russian Accounting Standards (RAS), Gorizont RT’s revenues for the first six months of 2004 totaled $11.6 million and net income $2.5 million. The company’s average monthly revenue per user (ARPU) was $20 in H1 2004. As of June 30, 2004, its net debt was $2.5 million.
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For further information contact:
Mobile TeleSystems, Moscow
Investor and Public Relations
Andrey Braginski
tel: +7 (095) 911-65-53
e-mail: ir@mts.ru |
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