The State Property Management Fund under the Government of 1the Kyrgyz Republic INFORMATION MEMO

On the auction for sale of 75% government owned shares of the Kyrgyz Mobile Company open joint stock company

The State Property Management Fund under the Government of the Kyrgyz Republic (SPMG) is inviting the strategic foreign and local investors for the auction for sale of 75% government owned shares of the Kyrgyz Mobile Company (hereinafter referred to as "KMC"). SPMF, on behalf of the Government of the Kyrgyz Republic, is a holder of 100% government owne:d shares of the Kyrgyz Mobile Company OJSC.

Method of privatization -open auction. Payment funds- national currency (Soms)/or USD at the official exchange rate of the NBKR as

of the date of payment. Form of payment- monetary, non-cash, lump sum, within 10 (ten) days from the date of signing

the sale and purchase agreement. Date of the auction and finalizing the results: August 21, 2012, 3.00 pm. Venue of the auction and finalizing the results: 59 Molodaya Gvardiya blvd., the Public

Television and Radio Corporation, Bishkek city. Name of the property (entity) under privatization: 75 per cent government owned shares of the

Kyrgyz Mobile Company OJSC. Information on the Kyrgyz Mobile Company OJSC Full name: the Kyrgyz Mobile Company Open Joint Stock Company Location of the Kyrgyz Mobile Company OJSC: 151 Moskovskaya s1tr, Bishkek, the Kyrgyz

Republic; Activity of the Kyrgyz Mobile Company OJSC: wireless telecommunications services (GSM

and 3G WCDMAIUMTS standards), data transmission, telematic services, including online voice transmission.

The State Communications Agency under the Government of the Kyrgyz Republic has assigned the radio frequency spectra in GSM and 3G WCDMAIUMTS standards to the Kyrgyz Mobile Company OJSC.

The starting value of 75% government owned shares in the Kyrgyz Mobile Company OJSC: 152, 500,000 (One hundred fifty two million five hundred thousand) Soms.

Basic conditions of the auction for sale of 75% government owned shares of the Kyrgyz Mobile Company OJSC:

The auction shall be open for any person,_except for state enterprises and state organizations, and persons registered in the countries and territories that provide the privileged tax regime and (or) do not allow full disclosure and provision of information to the bank supervision.authorities (offshore zones), specified in the list approved by the Board of the National Bank of the Kyrgyz Republic of April 16, 2003, #13/2.

The auction winner shall be the bidder that by results of auction has offered the highest price for the entity.

The purchaser shall commit to pay 7 commission fees above the price offer~d for 75 per cent shares of the Kyrgyz Mobile Company OJSC.

If the application and the required documents are submitted by the authorized representative of the applicant, the latter should present the document confirming his/her right to act on behalf of the applicant.

To check the provided documents for compliance with the legislation and the auction conditions, the Commission shall be entitled to request additional data as necessary.

The applicant shall not be allowed to participate in the auction in the following cases: - the provided documents fail to confirm the applicant's right to be a purchaser in accordance

with the legislation of the Kyrgyz Republic;

- not all the documents are provided in accordance with the list spec:ified in the information memo, or if they are not properly executed, or fail to comply with the auction conditions and requirements ofthe legislation;

- there is no confirmation of receipt of the guarantee deposit in the amount of 10% of the starting price for the entity under privatization to the SPMF account, or the original payment order for transfer of the guarantee deposit to the SPMF account is not available.

Upon request, the applicant withdrawn from participation in the auction can receive a copy of the minutes of the interdepartmental commission.

Before the applicant is recognized as the auction bidder, within three days prior to execution of the minute of receipt of the applications, the applicant shall have a right to recall the registered application by providing written notice to SPMF, and submitting the notice to the commission.

The guarantee deposit shall included in the winner's payment for the property purchased at the auction, based on his/her written application.

The auction, for which no bids are received, or if only one bidder is qualified, or none of the applicants are recognized as eligible bidders, shall be declared as invalid. If it is declared invalid, the auction commission shall prepare a protocol on the outcome of the auction.

All costs (including costs of conversion and transfer of funds) incurred by the Applicant or a Bidder in the course of the auction shall be paid by the Applicant or the Bidder

The legal entities should provide the following set of documents: Completed application form. Power of attorney for the authorized representative. Duly certified copies of constituent documents. Certificate of tax inspection, confirming absence of arrears in tax paymt:!nts to the budgets of all

levels of the last quarter preceding the date of filing the bid. This requirement is not mandatory for a foreign bidder - nonresident of the Kyrgyz Republic.

Notarized copy of state registration of a legal entity. This requirement is not mandatory for a foreign bidder - nonresident of the Kyrgyz Republic.

Certificate of the securities market state authority on the securities registration (for corporations). This requirement is not mandatory for a foreign bidder - nonresident of the Kyrgyz Republic.

A copy of the payment order with the bank note on the performance, confirming the deposit of the guarantee fee amounting to 10% ofthe starting value of the privatized entity to the SPMF's account.

The obligation to pay the seven percent commission fee above the pric.e offered for 75% shares of the Kyrgyz Mobile Company OJSC.

A signed list of all documents submitted in two counterparts.

The following should be submitted by individuals:

The completed application form. Passport (to be submitted personally when filing the application). A copy of the payment order with the bank note on the performance, confirming the deposit of

the guarantee fee amounting to 10% of the starting value of the privatized entity to the SPMF's settlement account:

The obligation to pay the seven percent commission fee above the pric<:! offered for 75% shares of the Kyrgyz Mobile Company OJSC.

A signed list of all documents submitted in two counterparts.

For more information on the application fotm, and other additional data please contact at the addresses and telephones mentioned below or at the SPMF web-site www.mgi.lffi

Applications with all necessary documents enclosed should be submitted to the State Property Management Funder under the Government of the Kyrgyz Republic no later than 4 pm, August 17,

2012, at the following address: 720017, 151 Moskovskaya str, Room 308:, Bishkek, the Kyrgyz Republic.

Start date for bids - July 17, 2012 Time and place for receipt of bids: working hours from 9.00 am 12-30 pm, from 13.30 pm to

6.00 pm, at: 720017, 151 Moskovskaya s.tr, Room 308, Bishkek. For more information call: (+996 312) 61-40-76, 61-52-53

The deadline for bids-4:00pm, August 17, 2012. . Meeting of the Interdepartmental Commission for consideration of the applicants' bids will be

held at 5:00 pm (Bishkek time) August 17, 2012 in the conference hall of the State Property Management Fund under the Government of the Kyrgyz Republic.

Date of selection of the bidders (decision by the Privatization Commission on qualification of the applicants for participation in the auction)- 11 am, August 21, 2012.

The auction will be held live on OTRK TV channel, at 3:00pm, August 21, 2012.

Details for settlements in Soms:

The State Property Management Fund under the Government of the Kyrgyz Republic

Pervomaiskii ROK Sia: 12905223 82820060 c/a 4402013100000520 Bank: Bishkek branch of "RSK Bank" OJSC BIC: 129052 TTIN:00405200110158 Pervomaiskii STI

Details for settlement in USD:

TINTERMEDIARY BANK Commerzbank AG, Frankfurt 60261 Frankfurt am Main, Germany -SWIFT: COBADEFF

Beneficiary bank account in Ace/ 400887175800 USD e Intermediary bank

Name of the beneficiary JSC "Aiyl Bank", Kyrgyz Republic nk:

SWIFT code AIYLKG22

Account: 1350100024039054

BENEFICIARY The State Property Management Fund under the Government of the Kyrgyz Republic

The procedure for making the guarantee deposit and its repayment. The guarantee deposit of 10% ofthe starting value ofthe privatized entity shall be transferred to

the account of the State Property Management Fund under the Government of the Republic, with the purpose of payment "guarantee deposit at 10% of the starting bidding price for participation in the auction for sale of75% shares ofthe Kyrgyz Mobile Company OJSC".

. ' The guarantee deposit should be received at the specified account on August 17, 2012, inclusive.

If no guarantee deposit is received within the specified period the applicant shall be disqualified from the auction.

The guarantee deposit shall be refunded to the applicant in the following cases and manner: - In case of withdrawal of the bid by the applicant prior to the deadlim!, the guarantee deposit

shall be refunded to the applicant within 10 days after receipt of the withdrawal notice; - In cases of withdrawal of the bid by the applicant after the deadline, and if the bidder is not the

winner, or the auction is declared invalid, the guarantee deposit shall be refunded within 10 days from the date of finalizing the auction;

Final provisions: The auction with only one bidder shall be declared invalid.

The winner of the auction shall be the bidder who offered the highest price for the entity. On the day of the auction, the winner shall sign a protocol on results of the auction and sign the purchase and sale agreement for the government stock within three days after signing the protocol on the outcome of the auction.

The guarantee deposit made by the purchaser shall be included into payment for the purchased property. The purchaser shall pay a lump sum by bank transfer within 10 (ten) days from the date of the sale and purchase agreement to the account specified in the sale and purchase agreement.

If the auction winner fails or refuses to sign the protocol on the outcome of the auction or sale and purchase agreement within the prescribed period, the guarantee deposit shall not be refunded, and that bidder shall lose the right to enter into the said purchase and sale agreement.

If the auction winner refuses to confirm the results of the auction (sign the protocol), it shall be regarded as a refusal to purchase the entity.

In this case, by decision of the Commission in charge of sale of state-owned property, the bidder that offered the price one step lower than the bidder who declined purchase of the entity, shall be declared as the winner. The Commission's decision on recognition of the bidder that have offered the price a step lower than the bidder who declined purchase of the entity, as the winner of the auction shall be taken no later than three days from the date of the auction. If that bidder refuses to sign the protocol on the outcome of the auction or the sale and purchase agreement, the guarantee deposit shall not be · refunded.

For further information please contact SPMF at the above address and telephone numbers. The interested persons can find text of the information memo and publicly available information on the Kyrgyz Mobile Company open joint stock company at the following web-site: www.mgi.kg.