Delegates approve establishment of commercial subsidiary Intersputnik Holding Ltd
and elect Mr. Stefan Kollar Deputy Director General of Intersputnik;
Russia's representative to become Chairman of the Operations Committee.

Prague, Czech Republic (April 5, 2006) - Attended by the delegations of the Member countries and Signatories, the XXXIV session of the Board and 3rd meeting of the Operations Committee of the Intersputnik International Organization of Space Communications were held here at the invitation of the Minister of Informatics of the Czech Republic.

The session of the Board was inaugurated by the Authorized Representative of the Republic of India on the Board, with a welcoming address of the Chairman of the Indian Space Research Organization Mr. Madhavan Nair who had chaired the Intersputnik Board for the last year. It was stressed in the address that in the year just ended Intersputnik had consolidated its reputation of a reliable and professional player in the international telecommunications market.

The delegates of the session unanimously elected Mrs. Dana Berova, Minister of Informatics of the Czech Republic, Chairperson of the Intersputnik Board for the next term.

As proposed by the Russian Ministry of Information Technologies and Communications, the Operations Committee elected Mr. Igor Zabolotniy - Russia's Representative in the Committee, Deputy Director General of the Russian Satellite Communications Company - Chairman of the Committee for the next term.

The meetings of the Board and Committee reviewed a wide range of issues related to current business and prospects of Intersputnik's development.

When discussing the implementation of the Organization's development strategy approved at the previous session of the Board, the governing bodies of Intersputnik approved the concept and business plan of the Organization's subsidiary Intersputnik Holding Ltd. - an international group of satellite service providers established in December 2005 to offer full-scale satellite communications services including the provision of the ground and space segments, establishment and maintenance of regional and international networks for governmental and private customers.

The Board and the Operations Committee noted that cooperation between Intersputnik and its Members and Signatories had become noticeably closer. In this context the delegates supported a number of ambitious satellite projects with the participation of such Member Countries as India, Germany, Ukraine and Mongolia. It is especially important that these international projects will use Intersputnik's own frequency/satellite resource. In this connection the Board and the Operations Committee discussed and approved measures taken by the Intersputnik Directorate with respect to the filing and international legal protection of Intersputnik satellite networks.

The Board and the Operations Committee made decisions aimed at restructuring the Intersputnik Directorate to make the executive body of the Organization more efficient and responsive.

The Board and the Committee unanimously elected Mr. Stefan Kollar, citizen of the Czech Republic, Deputy Director General.

The fourth meeting of the Operations Committee will be held in Moscow in November 2006.

About Intersputnik

Founded in 1971 under the intergovernmental agreement on the establishment of an international system and organization of satellite communications, Intersputnik is an international intergovernmental organization headquartered in Moscow, Russia. The Organization's mission is to contribute to the strengthening and development of economic, scientific, technical and cultural relations by communications as well as by radio and television broadcasting via satellites; cooperation and coordination of efforts of the member-countries in designing, establishing, operating and developing an international satellite communications system. Intersputnik can be joined by the government of any state which shares the Organization's principles of activity. Today, Intersputnik has 25 member countries.

Today, Intersputnik has 25 member countries. Intersputnik operates an international system of satellite communications and provides telecommunications services to broadcasters, telecom operators and corporate customers via a fleet of geostationary satellites. Under a long-term partnership with Russian Satellite Communications Company, Intersputnik offers its customers satellite resource on Express-A and Express-AM series satellites. The Organization is an official distributor of satellite resources and services of Eutelsat. It also markets and sells Gascom's satellite capacity in the international market. Intersputnik is a co-founder of the Lockheed Martin Intersputnik joint venture and provides services via the LMI-1 spacecraft. Intersputnik's customers are government and private companies in over forty countries.

More about Intersputnik at www.intersputnik.ru

For detailed information, please contact:

Intersputnik Mr.Victor Veshchunov +7 495 241 45 75, info.media@intersputnik.com