/KASE, January 31, 12/ - JSC "Kazakhtelecom" (Astana), whose securities are officially listed at Kazakhstan Stock Exchange (KASE), has provided to KASE the following press-release of January 30, 2012:

quote

At JSC "Kazakhtelecom" there was a meeting of heads of subsidiaries and affiliates who summarized Y2011 operations and set objectives for the upcoming period.

According to consolidated statements, revenues in 2011 made up KZT173,436 m, net income - KZT50,484 m, EBITDA - KZT65,291 m.

Telephone network density per 100 people made up 24.05 telephones in Kazakhstan, with 31.59 telephones in urban areas and 15.0 telephones in rural regions.

Following CDMA-450 expansion, customers in South-Kazakhstan, Almaty, Zhambyl, Aktobe, Kostanai and Pavlodar regions were provided with access to the Internet. By the end of 2011 the mounted intake capacity of the network made up 364,682 numbers. The network covers 4,596 populated areas in the countryside (504 base stations). During the project implementation in 2011, 80 base stations, 11 DRRL, equipment 21 of the SE satellite system; over 7 km of fiber-optic telecommunication links were laid. For the future (2012-2015) the project envisages an extension of the existing CDMA-450 to 396 base stations with the possibility of connecting 500 thousand customers. In order to accelerate the introduction of the broad-band access with up to 0.5 Mbit/s across Kazakhstan, there are plans to modernize the existing CDMA network based on EV-DO. 2012 will see 25,250 customers across Kazakhstan connected.

In 2011 JSC "Kazakhtelecom" came up with an Innovative Development Strategy for 2012-2015, which means as much as the implementation of an innovations management process in order to reach a maximum positive effect from technological and managerial solutions introduced. For that purpose JSC "Kazakhtelecom" set up an Innovations Committee. Its responsibilities include making the Company's participation in the Accelerated Industrial and Innovative Development program of the government more agile, increasing the share of Kazakhstan-made content in its procurement system.

Measures involving the expansion of Internet included a 22 per cent reduction of monthly fees for tariff plan "Megaline Turbo"; the monthly fee on tariff plan "Megaline Hit" has not changed; however the capacity was increased 2 to 4 times for external resources and 2 times - for internal; the threshold traffic figure for external resources was raised 2 times; the speed of access to external resources after passing the threshold went up from 128 Kbit/s to 256 Kbit/s. In addition, customers unable to connect to "Megaline Hit" with pre-set parameters, were provided with a reductive ratio of 0.75 applied to the monthly fee. Also, 2011 saw the introduction of new Megaline-family tariff plans: "Megaline Drive" and "Megaline Hit Optima". Corporate customers saw a 2 time speed increase for Internet access under tariff plans (hereinafter - TP) "Unlimited" with the monthly fee remaining unchanged, which was equivalent to a reduction of 39 to 72%.

From January 1, 2012, the following Megaline-based TPs are cheaper: TP "Megaline Hit" - by 10%; TP "Megaline Hit Optima" - by 5%; TP "Megaline Drive" - by 12.5%.

Public relations department JSC "Kazakhtelecom"

unquote

[2012-01-31]