The price range for the Offering has been set at between US $10.50 and $13.00 per global depositary receipt (GDR). Shares offered in the Domestic Offer are expected to be offered at an offer price in KZT per common share that reflects the weighted average Kazakhstan Tenge/U.S. dollar exchange rate set in the morning session of the KASE on the business day preceding the announcement of the Offer Price in connection with the Global Offer. Each global depositary receipt represents an interest in one common share of the Company.

The Offering consists of a sale by Sonera Holding B.V., a wholly-owned subsidiary of TeliaSonera AB, of 50 million of the Company’s common shares, including common shares represented by the global depositary receipts, representing 25% of the Company’s share capital. The current outstanding share capital of the Company consists of 200 million common shares.

The Selling Shareholder will grant to the underwriters a put option to sell back to the Selling Shareholder at the offer price global depositary receipts representing up to 10% of the Offering, which may be purchased in the market by the underwriters as a result of stabilisation activities in connection with the Offering.

Based on the Offering’s price range, the market capitalisation of the Company at the commencement of dealings is expected to be between $2,100 mln and $2,600 mln.

 Institutional bookbuilding and the roadshow commence today and are expected to end on 11 December 2012

Credit Suisse, UBS Investment Bank and Visor Capital are acting as joint global coordinators and joint bookrunners of the Global Offer. Renaissance Capital is acting as a joint bookrunner and Halyk Finance is acting as a co-manager of the Global Offer. The Domestic Offer is being led by Visor Capital.

Veysel Aral, Chief Executive Officer of Kcell, said:

The IPO marks an important milestone for our company, and it will help us to further strengthen our corporate brand.

We are delighted with the level of interest being expressed in Kcell and are pleased to be introducing Kcell both to the international and Kazakhstan’s capital markets. Kcell provides investors with an opportunity to participate in a profitable business operating in the fast growing economy of Kazakhstan with a dividend policy reflecting our superior cash flow.

With TeliaSonera’s on-going commitment we are well placed to benefit from the increase in mobile content and development of data services in Kazakhstan.

About Kcell

Kcell is the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and the number of subscribers. It has operated since 1998, and as of 30 September 2012 it had approximately 12.7 million subscribers, representing a market share of 47.7%, as estimated by the Company. Its estimated market share in terms of revenue was 57% for the year ended 31 December 2011.

Kcell provides mobile voice telecommunications services, value-added services such as short message services, multimedia messaging services and mobile content services, as well as data transmission services including internet access. It has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers), and the Activ brand, which is targeted primarily at mass market subscribers. The Company offers its services through its extensive, high quality network which covers substantially all of the populated territory of Kazakhstan.

For the year ended 31 December 2011, the Company generated revenue of KZT 178,786 mln (c. US $1,193.0 mln); EBITDA for 2011 was KZT 105,794 mln (c. $706.0 mln), representing a margin of 59.2%; and profit for the year was KZT 66,858 mln (c. $446.1 mln). For the nine months ended 30 September 2012, the Company generated revenue of KZT 133,104 mln (c. $888.2 mln); EBITDA for the period was KZT 74,503 mln (c. $497.2 mln), representing a margin of 56.0%; and profit for the period of KZT 46,072 mln (c. $307.4 mln).

The Company is controlled by TeliaSonera AB. Prior to the Offering, TeliaSonera AB held 49% of Kcell directly and 37.9% indirectly through Fintur Holdings B.V., a company jointly owned by TeliaSonera AB and Turkcell İletişim Hizmetleri A.Ş, resulting in a total effective ownership of 86.9%. Sonera Holding B.V., a 100% subsidiary of TeliaSonera AB, acquired its 49% holding from Kazakhtelecom JSC in 2012.

Kcell plans to benefit from the significant growth potential for mobile data services in Kazakhstan. The Company intends to continue to invest in the deployment of its 3G network to expand coverage. Kcell aims to maintain its market leadership in terms of revenue and the number of subscribers by offering its products and services at competitive prices, expanding its offering of products and services, maintaining the high quality of its network and enhancing its brand value.