Zapp’s 3G network - new developments

During a press conference held yesterday, Chris Bataillard, CEO of Zapp announced that our 2100 Mhz network will be functional by June 30th, providing mobile high-speed data services based on ZTE's UMTS/HSDPA solutions.

As per license obligations, Zapp has to deploy a full 3G network by end of 2011, the first step of this process being due on June 30th 2008 and refers to covering 19 major cities in Romania: Bucuresti, Timisoara, Brasov, Constanta, Cluj, Iasi, Sibiu, Tg Mures, Braila, Arad, Galati, Pitesti, Ploiesti, Satu Mare, Baia Mare, Buzau, Bacau and Oradea.

By the end of the first stage of the UMTS network build-up, over 5.5 million people will be within the range of Zapp's UMTS signal. It means that the company will have fulfilled its license obligations to provide UMTS services to at least 26% of the Romanian population.

By May 20th, each of the nineteen cities will have at least one 2100 Mhz base station deployed. Out of the total number of cities to be covered in this first phase, eleven of them are in advanced completion stage and some of these cities will be fully covered (all base stations installed and functional) already by the end of next week.

Although Zapp is planning on commercially launching 3G services only around fall, Zapp's customers can expect faster mobile Internet access already by the end of July 2008 through the deployment of an evolution (Rev A) to our current EV - DO network.

As such the speed will increase to 3.1Mbps on the EVDO network and to 7.2 Mbps once the UMTS commercial offer will be available.

Change of technology for Zapp's 2100 Mhz network

Zapp decided at the beginning of this year to use UMTS/HSDPA (High Speed Downlink Packet Access) technology for its 2100 Mhz network as opposed to CDMA 2000.

The UMTS infrastructure is supplied to Zapp by ZTE China and the project, upon completion, will further enhance Zapp's mobile broadband services by further improving the capacity and service quality of its data network. The 450 Mhz network will continue to support both data and voice services and will undergo some significant expansion over the next period of time in terms of both capacity and coverage.

With the new data network, the 2100 Mhz network, Zapp will be able to offer download speeds of up to 7,2 Mbps and upload speed of up to 368 kbps.

Until the end of the year Zapp expects to launch 4 to 6 new mobile handsets to its users. New devices are also tested for the EV DO network as well as for the launch of the 2100 Mhz network.

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