Shareholder TeliaSonera to withdraw from Eurasia

Kcell JSC

Kcell shareholder TeliaSonera to withdraw from Region Eurasia

Almaty, 17 September 2015 - JSC Kcell ("Kcell" or the "Company") (LSE, KASE: KCEL), the leading operator in the telecommunications market of Kazakhstan in terms of revenues and subscriber base, has been notified by its majority shareholder TeliaSonera, which holds directly and indirectly 61.9 percent of shares in Kcell, that it has initiated a process to reduce its presence and over time to fully withdraw from Region Eurasia.

TeliaSonera's Region Eurasia incorporates operations in Nepal, Kazakhstan, Uzbekistan, Azerbaijan, Georgia, Moldova and Tajikistan. TeliaSonera has indicated that it is conducting this process market by market, and will eventually leave the entire region.

Kcell will further update the market in due course, as further information becomes available.

Art Ots, CEO of Kcell, said:

"Since Kcell's listing at the end of 2012, we have benefited greatly from the expertise and guidance of our majority shareholder TeliaSonera. Having operated now for three years as a listed company, we have established a clear business strategy as well as robust internal structures and protocols to ensure best practice corporate governance.

"We look forward to continuing to execute our customer centric strategy and services and technology excellence, in order to maintain our market leadership and drive growth and shareholder value."

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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. TeliaSonera holds directly and indirectly 61.9 percent of the Company's common shares.

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.