OREANDA-NEWS. June 22, 2007. JSC SITRONICS ("Sitronics" or "The Company") (LSE: SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS with a growing presence in other EEMEA emerging markets, and JSC Moscow City Telephone Network ("MGTS") today announced that they have signed a US$ 8 million agreement for the delivery of TENNET equipment, to be used in the creation of MGTS's Next Generation Network (NGN). The delivery and assembly of the equipment will start in the third quarter of 2007.

Within the framework of the agreement, SITRONICS Telecommunication Solutions will deliver subscriber gateways for 200,000 transit ports, in order to transfer existing analogue network subscribers to the newly created NGN network. SITRONICS Telecommunication Solutions will supply its own software and hardware switchboards for the management of subscriber and trunk gateways. The trunk gateways previously delivered by SITRONICS will be used to enable the existing network to function in conjunction with the new NGN network.

Evgeny Maximenko, General Director of SITRONICS Telecommunication Solutions Russia, commented: "We continue modernising the MGTS network infrastructure based on the TENNET platform, which was recently introduced for NGN networks. We intend to have 200,000 MGTS subscribers connected to the NGN network and using the new services by March 2008."

Victor Alekhin, Deputy General Director of MGTS responsible for the network technical development, commented: "The introduction of the TENNET equipment is the next stage in the development of the NGN network. Approximately half of MGTS subscribers are expected to switch to the NGN by 2012, when the reconstruction of the network and the transition to digital technology will have been completed."