Sky Link And Lucent Technologies Start Deployment Of CDMA2000 1xEV-DO Network In Krasnodar

AUGUST 31, 2006 - MOSCOW – ZAO Sky Link, the largest CDMA450 operator in Russia and Commonwealth of Independent States (CIS), and Lucent Technologies (NYSE: LU) today announced they are increasing the voice capacity of the Sky Link network in Krasnodar and enhancing it with CDMA2000 1xEV-DO technology. OAO Krasnodar Cellular Network, the regional Sky Link operator, and Lucent are upgrading existing Lucent base stations with CDMA2000 1xEV-DO technology and installing new equipment that will enable the operator’s Sky Turbo service, which provides data speeds of up to 2.4 Megabits per second. The project is beginning in the cities of Krasnodar, Sochi, and Novorossisk.

“Sky Turbo brings new, profitable multimedia services to the region and will help grow Sky Link’s reputation as a full-service 3G operator,” said Alexandr Piotrovsky, deputy general director of strategic marketing and sales for Sky Link. “The high data speeds enabled by CDMA2000 1xEV-DO - the main advantage of CDMA450 compared to the 2G standards - enables the proliferation of 3G services in the regional markets.”

“Subscribers in the Krasnodar territory and Adygea are the leaders in terms of mobile data consumption on Sky Link’s network,” said Michael Mochulsky, general director of Sky Link-Krasnodar. “In July, the share of non-voice services in our revenues grew up to 48 percent. The powerful Sky Turbo service delivers an enhanced mobile data experience to our subscribers and our main task is to make the access to the new services as convenient as possible.”

Within the project’s framework, existing Lucent base stations are being upgraded with CDMA2000 1xEV-DO channel cards and software. The Lucent Radio Network Controller (RNC) is being deployed to ensure a flexible and scalable management of the network’s RF (radio frequency) resources. Lucent Worldwide Services is providing installation and integration services.

“Every time we introduce EV-DO technology in the Russian markets, we see how it helps operators gain significant momentum via the introduction of new high-speed mobile data services,” said Dmitry Kamensky, managing director, Lucent Technologies Russia and CIS. “Operators that have deployed the technology are able to offer their subscribers various new, revenue-generating services.”

The EV-DO based Sky Turbo service delivers high-speed mobile data services and Internet access to Sky Link’s subscribers. It features the highest mobile data speeds available in Russia. The Sky Turbo service was commercially launched in December 2005 in the Sky Link-Moscow and Sky Link-St. Petersburg networks simultaneously. In March 2006, the Sky Link-Ekaterinburg network’s subscribers were granted access to the service.

Trial tests demonstrated that Sky Turbo enables subscribers to download files at average data speeds of 600-700 kilobits per second given standard network load conditions. The advanced wireless broadband Internet access and data transmission technology provides Sky Link’s subscribers with fast downloading of Internet content and large files, e-mail, IPTV, and remote video surveillance services.

The Sky Link network is based on the IMT-MC-450 standard (CDMA2000 1X and 1xEV-DO technology deployed in the 450 MHz frequency range), which provides advanced digital mobile communication services to subscribers -- reliable, high-quality voice communication with the highest degree of unauthorized access protection, and high-speed data services including Internet access.

About Sky Link
The licensed territory of Sky Link, the largest CDMA operator in Russia, covers 65 regions of the Russian Federation with 104 million inhabitants which is more than 72 percent of the country’s population. ZAO Sky Link was established in July 2003 to create a federal cellular communications network based on IMT-MC 450 (CDMA450) technology. The company successfully deploys regional networks in all licensed markets. The technological advantages of the new digital standard allow Sky Link to offer its subscribers high-speed Internet access and data services (up to 2.4 Mbps in the Sky Turbo coverage zone), high-quality voice services, storage and online access to any information, and other multimedia services not available on existing 2G networks. In May 2006, the Sky Link subscriber base reached 358 thousand subscribers, compared with 200 thousand subscribers in May 2005. Sky Link is a member of the International 450 Association (IA-450) since 2003. The company was awarded IA Sotovik’s Diploma for the most ambitious project of 2004 and RBC’s “The company of the year 2005” Award. For further information on the company, please visit: http://www.skylink.ru.

Established in 1998, OAO Krasnodar Cellular Communication provides NMT-450 MHz standard-based services in the Krasnodar region and Adygea Republic. The existing base stations provide stable communication services to the greater part of the Krasnodar region and Adygea Republic. Now, Krasnodar Cellular’s service zone is one of the largest in the south of Russia. In 2004, the company began the expansion of its IMT-MC 450 network in the framework of the Sky Link federal project.

About Lucent Technologies
Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent’s customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit http://www.lucent.com.

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Ichiro Kawasaki

Lucent Technologies

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