Proposed dividend for the FY 2016

Proposed dividend for the FY 2016

Almaty, 13 April 2017 - Kcell Joint Stock Company ("Kcell" or the "Company", LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, announces that its Board of Directors has recommended the annual dividend ("Dividend") in the amount of KZT 11,678 million, or KZT 58.39 per ordinary share. This represents 70 percent of the Company's net income for the 12 months ending 31 December 2016 ("the Period").

The proposed record date of Shareholders entitled to receive the dividends is 25 May 2017 (01:00 Almaty time). If approved at the AGM on 24 May 2017, the proposed Dividend will be paid starting from 1 June 2017.

*Due to technical banking requirements, the actual net income amount is slightly rounded down to ensure that it is equally divided into total number of shares, therefore the final dividend per share has two decimals.

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Company Overview

Kcell provides mobile voice telecommunications services, messaging services, value-added services such as multimedia 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.

In December 2012, Kcell successfully completed its offering of GDR's on the London Stock Exchange and common shares on KASE. The price was set at USD 10.50 per GDR and KZT 1,578.68 per share with each GDR representing one share. The offering consisted of a sale by TeliaSonera of 50 million shares, which represent 25 percent of Kcell's share capital.

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 and to introduce high quality 4G services in due course. 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.