AZERCELL REPORT

Coverage & subscribers:

At the present Azercell Telecom JV covers 82% of Azerbaijan mobile communication market. Its network covers 73% of the territory of Azerbaijan and due to this 98% of the population use qualitative communication rendered by the operator. For now the number of "Azercell Telecom" JV subscribers are more than 1. 500.000.

Technical equipment:

As the quantitive characteristics of telecomunication Azercell Telecom JV has 2 Home Location Registers (HLR), 9 Base Station Controllers (BSC), 10 Mobile Services Switching Centers (MSSC) and 626 Radio Base Stations(RBS). In first half of 2005 operator installed 125 new RBS in different rgions of Azerbaijan and in Baku.

Roaming:

Azercell Telecom JV is paying special attention to the development of international communications. Now Azercell Telecom JVs' subscribers had the possibility to speek throw the RoamCELL service within networks of 241 providers in 108-world countries over the world. In January 2005 for the first time in Azerbaijan, Azercell Telecom JV established mobile communications with Iran and concluded roaming agreement with "MCI Company" mobile operator.

Investments:

During 6 months of 2005 Azercell spent $39,776,516 for the development of communication in Azerbaijan and within 8,5 years of its activity it spent a total of $337,537,516 for this purpose. Till the end of 2005 Azercell plans to invest totally $76,152,000 to this sector.

Taxes:

In first half of 2005 Azercell Telecom paid $25,775,527 worth taxes to the government and during 8,5 years- $170,711,539.

Tariffs:

The regular novelty introduced by Azercell Telecom JV in this direction is performed by the implantation of new tariff schedule. The new tariff pack, being specially designed for the subscribers who feel young, has many privileges. Any SimSim subscriber can switch to this tariff pack by sending empty SMS to number 7575.

Subscribers of the new tariff pack "GяncSim" pay 8 units for one SMS, 3 units for 50 KB WAP/Internet and 40 units for MultiMesajCELL (MMS).

As compared with SimSim tariffs this means discount by 27%, 25% and 20%, respectively. Discounts are also offered for weekend calls.

"GяncSim" users get monthly free gifts: 15 SMS, 2 MMS and 500 KB WAP/Internet.

Also 10 units rule is not applied to calls with duration less than 10 seconds.

Services and privilege campaigns:

The provider is keeping its principles of introduction of new, exclusive services for its subscribers. So, from first months of 2005, Azercell Telecom proposed to subscribers new service "ZяngimCell". This service, which is very popular all over the world and famous like RBT (Ring back Tone), in Azerbaijan is called ZяngimCELL. ZяngimCELL service offers an opportunity to replace standard monotonous sounds by predefined sound effects and musical fragments chosen by the subscriber. To activate the service, the subscriber must send the code to number 6070. The list of the sound effects or musical fragments and their codes are available on http://zengimcell.azercell.com

The lottery campaign:

In addition to thousands of prizes, during the Campaign of Millions Azercell Telecom holds regional concert tour of honored singer of Azerbaijan Zulfiya Khanbabayeva, which is named "Canыm Mяmlяkяtim!"

A total of six concerts were planned to be held during the campaign, 4 of which has been already held in various Azerbaijani cities and regions: Ganja - July, 22; Quba - August, 5; Sheki- August, 19; Nakhichevan - September, 2; Lenkaran - September, 16. The conserts will be held in Baku- September, 30.

Social programs

Abiding by its traditions this year Azercell Telecom JV congratulated children living in Children Home and Rehabilitation Centre "Цmid Yeri" (Hope) on Novruz holiday. Since the first day of its activities Azercell Telecom has become a reliable support for the Children House and Rehabilitation Centre "Цmid Yeri". During the past 8.5 years Azercell company provided financial and moral support to 730 children deprived of homes and parental care that were educated here to return to normal life.

In addition, Azercell has congratulated 200 orphans and very young children deprived of parental care in boarding school No 1 in Mashtaga district, Sabunchi region, on Novruz holiday. It has become a tradition for Azercell Telecom JV to take care of low-income section of population.

As a part of this tradition on May 10, 2005 the company provided food products to 1,000 internally displaced people living in Baku's Narimanov region in the administration building of regional executive authorities. In 2004 the company spent to charity more than $1 million.

Sponsorship

The exhibition devoted to 80th jubilee of Vajija Samedova and 85th jubilee of Latif Feyzullayev, outstanding artists and honored art workers of Azerbaijan, has been held in the exhibition hall named after Sattar Bahluldzade through sponsorship and support of Azercell Telecom JV.

This year May 31 - the Last Bell Day - was magnificent and it will be stamped in memory of school graduates. It was leader of Azerbaijan mobile market Azercell Telecom JV that made this holiday so brilliant. On this day the company organized and held concert with participation of famous Russian and Azerbaijani pop stars, on the Seaside Boulevard. On the same day Azercell has launched it's new tariff pack "GяncSim". In addition video clip "Чцnki gяncsяn!" was shot through Azercell's sponsorship.

On 5, June 2005, through the organization of Azercell Telecom JV, the best picture on asphalt competition "ЧЯK!", devoted to the International Day of Children Protection, has been held in National Seaside Park with participation of about 250 schoolchildren from various Baku's schools.

Potential of "Azercell Telecom" JV is great and the operator wills to realize it completely in Azerbaijan.