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Kuat DombaiCorporate Communications Director

GSM Kazakhstan – K Cell

October 22, 2007

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Kazakhstan Mobile Market Today

10 Million Mobile Users 70% penetration by the end of 2007GSM Users - 96%, CDMA – 4%Operators & Market Shares: GSM Kazakhstan (K Cell, Activ) – 49%, VympelCom (Beeline) – 46%, Altel (Dalacom, Pathword) – 4%, Neo – 1%Technologies: GPRS, EDGE, 3G trial expected by the end of 2007

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Figure 1. Cellular communication usage among people living in oblast centers of Kazakhstan in 2006 and 2007 years (N1=1000, N2=1000)

60%

7%

34%

73%

8%

19%

Users of cellularcommunication

Former users ofcellular

communication

Never use cellularcommunication

2006 year 2007 year

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Figure 2. Distribution of users by level of monthly cellular spending and their inputs to total cellular spending (N1=598, N2=729)

5%

45%

35%

16%

6%

34%

27%

34%

< 1000 1000-2999 3000-4999 > 5000

Tenge

2006 2007

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Figure3. Share of cellular brand users in 2006 year (oblast centers, Kazakhstan, N=598)

44%

51%

34%

6%

37%

8%5%

30% 29%

19%

2%

28%

4%2%

27% 25%

16%

2%

26%

3%2%

0%

10%

20%

30%

40%

50%

60%

K'Cell Activ K-Mobile Excess Beeline Pathword Dalacom

Ever used In use at present Main brand

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Figure 4 Importance of cellular service features (three answers possible, N1=598, N2=729)

67%

66%

35%

23%

17%

26%

26%

9%

14%

16%

65%

53%

42%

22%

18%

17%

16%

13%

10%

8%

Quality of connection

Price of 1 minut of outgoing calls

Coverage

Subscriber's rental

Price of additional services

Discounts (night calls, holiday calls, etc.)

Additional services (sms, mms, wap, internet,multimedia etc.)

Rounded-off time

Opportunity to change tariff plane

Price of roaming calls

2006 год 2007 год

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GSM KazakhstanThe first to introduce GPRS, WAP and MMS. And the only operator in Kazakhstan which provides EDGE (launched December 2004). 3G on offerWidest Coverage – 1.165 population points.Currently 100% of the network supports GPRS1.200 direct employees; over 50.000 indirectly employedOver $1 bln investment by 2008 ($200 mln in 2007)Roaming to over 200 operators in 120 countries, GPRS roaming partners in 32 countriesShareholders: FinTur (51%), Kazakhstelecom (49%). Other Assets: AzerCell (Azerbaijan), GeoCell (Georgia), MoldCell (Moldova)In acquisition: CosCom (Uzbekistan), 2 operators (Tajikistan), 1 operator (Afghanistan)

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K Cell Coverage Area

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Government & Social. Supporting 50 top competitive nationsEconomy Diversification / Building Innovative Kazakhstan

Over $1 mln. Spent for Social Programs K Cell Innovation Fund - project starts in 2007 in cooperation with Ministry of Education and the World Bank.K Cell Business Management Institute established May 2005Over 40 CSR projects were implemented in 2007 in the spheres of education, healthcare, sports and national heritage support programmes.

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Key Issues

Regional Expansion. 14 direct offices and over 100 express service centres in Kazakhstan. Completing new assets acquisition and looking into new opportunities

Service Reach & Quality3G rollout upon license receipt

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BEST COVERAGE

BEST QUALITY

MOST ADVANCED SERVICES AND BEST CUSTOMER CARE

AFFORDABLE PRICES

HIGHLY QUALIFIED HUMAN RESOURCES

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TO HAVE GOOD AND TRANSPARENT CORPORATE GOVERNANCE

TO KEEP CREATING PARTNERSHIPS WITH GOVERNMENTAL AND NON-GOVERNMENTAL LOCAL ENTITIES

TO BE AN ATTRACTIVE WORKING ENVIRONMENT

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KAZAKHSTAN LEADS, K-CELL LEADS