Fly is going to take up 4,5% of Russian mobile market share and 6% of CIS mobile market. Ambitious plans of the brand is dictated by excellent results of a year 2006.

Fly brand entered the Russian market in 2003 and today has a strong position, increasing its market share. The results of 2006 showed a 300% Fly sales growth, with the Fly market share growth from 1 to 3% in Russia and from 1,5 to 4% in CIS.

Amazing selling growth became possible because of high marketing activity and the broadest spectrum of new models.

In 2006, 27 new Fly models were launched in all categories — barphones, clamshells, sliders. Fly also started venturing into new sectors with the launch of the first Fly smartphone in December 2006: the Microsoft Windows Mobile based Fly IQ-110. First Fly smartphone has already got favorable reactions of experts. Fly management expects the same reactions of customers.

Summed up results of last year Fly management named 3 successful models in 2006. 3 best sellers combine highly stylish designs and very strong features:

Fly MX200 Slim urban clamshell: 0.3 megapixel camera, MP3 player, MP4 video, built-in memory 60 MB + microSD support

Fly MX300 Sleek super-slim clamshell: 1.3 megapixel camera, MP3 player, MP4 video, Bluetooth 1.2, built-in memory 60 MB + microSD support

Fly SL500i Ambitious, slim and stylish slider: 1.3 megapixel camera, MP3 player, MP4 video, Bluetooth 1.2, built-in memory 60 MB + microSD support

In 2007, Fly will continue to develop its 3 core brand characteristics while striving to continuously improve them:

Style: new ultra contemporary designs with top build material, more special editions with new colors and graphics.

Technology: new phones will include the latest innovations and cutting edge features. The new standard will include 3 megapixel camera, MP3/MP4, BT, FM radio.

Functionality: highly intuitive and stylish interfaces, user friendly features and keypads and some of the best Russian customization available on the market.

Suresh Radhakrishnan,
FLY Chief Executive Officer:

— 2006 was an exceptional year for Fly in the CIS and especially in Russia. Over the year, Fly tripled its market share to approximately 3% in Russia and 4% in CIS. Fly is now one of the major players in the region and a direct competitor for mobile phone giants such as Samsung, Motorola and BenQ-Siemens.

Fly is planning the launch of approximately 30 new phones in 2007, in all categories and will continue develop into new sectors like smartphones and luxury phones.

For Q1 of 2007 only, 8 new models are scheduled for release, including:

• an exclusive series of 3 cutting edge 3 megapixel camera phones: 1 clamshell, 1 barphone, 1 slider;
• a special series of 2 stylish fully loaded mid end clamshells;
• the first luxury Fly phone: Fly LX800 SAPPHIRE.

In 2007, Fly intends to continue reinforce its position on the Russian market as one of the main mid-high end mobile phone brands.

Prices for the Fly range in 2007 will vary from 140 $ to 600 $ with the average selling price of approximately 220 $.

Fly has had an excellent year in the CIS, with particular success in Ukraine and Kazakhstan, where it has already achieved a leading position. In Uzbekistan, Azerbaijan and Byelorussia, Fly’s market share is continuing to grow very fast.

In Q3 2006, Fly was launched in India. In 2007, we will also launch in the Middle-East and certain countries in Africa.

Suresh Radhakrishnan,
Fly Chief Executive Officer:

— 2007 looks like being another remarkable year for Fly with an expected market share increase of over 50% in Russia and CIS. Fly intends to reinforce its position as one of the leading brands on the mobile phone market in the countries in which it operates.