TNW Teleset Net

RNS Number:0444M
Teleset Networks PCL
18 January 2008


Press Announcement


FOR IMMEDIATE RELEASE                                            18 January 2008


Pre-close trading update

Teleset Networks ("Teleset" or "the Company"), a leading private fixed-line
telecom network operator in the Republic of Tatarstan, Russia, announces that it
continues to achieve strong, profitable growth and expects its results for the
year ended 31 December 2007 to be in line with market expectations.

The Company is experiencing buoyant demand for its services, from both
residential and business customers. This reflects continuing economic growth in
its chosen markets which is boosting internet and broadband penetration and xDSL
traffic. In line with its stated strategy, the Company has further improved its
all-digital network coverage in Kazan by increasing its subscriber base both in
telephony and internet.

The early performance of Teleset's new cable TV service, launched in Kazan in
August 2007, has been very encouraging with a total of approximately 850
subscribers won by 31 December 2007. Management is confident that the
development of this and other new services will further strengthen Teleset's
market position as well as generating incremental revenues from its network.

During the year, the management team successfully completed the integration of
TNPKO, acquired in November 2006, which contributed positively to financial
performance for the second half of 2007.

In November 2007, Teleset made its first strategic move outside Kazan, acquiring
OOO Svyazinvest ("Svyazinvest") for US$10.8 million. Svyazinvest is a private
fixed-line telecom operator in Naberezhnie Chelny, the second largest city after
Kazan in the Republic of Tatarstan. Integration of Svyazinvest is proceeding to
management's plan and should be completed during the first half of 2008.

The company expects to make a full announcement of results for the year ended 31
December 2007 in May 2008.


END



CONTACTS


Teleset Networks                                                 +357 22 450 790
Yiannis Demetriou

Blue Oar Securities Plc - Nominated Adviser                     +44 20 7448 4400
Shane Gallwey

Metropol (UK) Limited - Broker                                  +44 20 7439 6880
Alexander Selegenev

Bankside Consultants - Financial PR adviser                     +44 20 7367 8888
Simon Bloomfield, Steve Liebmann or Andy Harris





About Teleset

Teleset is a leading private fixed-line telecom operator in the Republic of
Tatarstan, Russian Federation, where the business has been operating since 1996.

In Kazan, the capital of the Republic of Tatarstan, Teleset owns an all-digital
local network with current switching capacity of 130,000 lines. Its US$17
million acquisition of TNPKO in November 2006 improved its coverage of Kazan
where its market share is approximately 27 per cent for voice traffic and 29 per
cent for data traffic.

Management's strategy is to become Tatarstan's leading telecom operator and to
expand into other cities within the Russian Federation, both organically and
through carefully selected acquisitions. The US$10.8 million acquisition in
November 2007 of OOO Svyazinvest, the third largest fixed-line telecom operator
in Naberezhnie Chelny, was the first strategic move by Teleset outside Kazan.
Naberezhnie Chelny, where the Company has a market share of approximately 10 per
cent, is the second largest city after Kazan in the Republic of Tatarstan.

Another key objective is to generate incremental revenues from its network. To
this end, in August 2007 the company launched a new cable TV service in four
districts of Kazan, (Aviastroitelny, Kirovsky, Novo-Savinovsky and Privolzhsky),
with a total addressable market of approximately 250,000 flats. The Company
plans to roll out the service in the other three districts of Kazan.

Major long-term shareholders include funds managed by Templeton Asset Management
Ltd., by the Black Sea Trade and Development Bank, an international financial
institution, and by Deutsche Bank.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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