EDC FINANCES RUSSIAN PURCHASE OF NORTEL CELLULAR TECHNOLOGY

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OTTAWA, December 1, 2004 -- Export Development Canada (EDC) has signed an agreement to provide financing for up to USD $10 million to RTK-Leasing of Russia for the purchase of CDMA telecommunications network equipment and related services under an agreement between RTK-Leasing and Nortel.(*) RTK-Leasing-active primarily in the Russian telecommunications sector- will purchase Nortel's technology and lease it to cellular operator Uralwestcom. Uralwestcom is a 100-percent-owned subsidiary of RTDC, a US corporation primarily focused on development in the IT and telecommunications sectors in Russia and other countries. Nortel's CDMA technology will be used to enhance Uralwestcom's current service with the addition in early 2005 of mobile broadband wireless service to subscribers in the Sverdlovsk region under the Sky Link brand. Sky Link, founded in 2003 to roll out an IMT-MC-450 network in Russia, is a 50/50 Joint Venture of RTDC and AFK Sistema. "The Russian telecommunications market is increasingly competitive," said Eric Siegel, EDC Executive Vice-President, Medium- and Long-Term Financial Services. "Providing attractive financing terms to Russian buyers is essential for success in this marketplace, and EDC is pleased to fill this trade need for Canadian exporters such as Nortel." Canadian exporters and investors are providing products and services to meet growing opportunities within Russia, as evidenced by the rapidly increasing volume of business in Russia supported by EDC. From just over CAD 4 million in 2002 and CAD 16 million in 2003, EDC's volume of business in Russia has exceeded CAD 133 million to date in 2004. EDC is working to strengthen its capacity to support Canadian businesses active in various sectors of the Russian market, and is pursuing partnerships with targeted Russian counterparties-including both corporations and financial intermediaries-in order to facilitate procurement from Canada. EDC provides trade finance and risk management services to Canadian exporters and investors in markets world-wide. Founded in 1944, EDC is a Crown corporation that operates on commercial principles. (*) Nortel is a trademark of Nortel Networks. - 30 - For further information: Glen Nichols Public Affairs Tel.: (613) 598-2876 E-mail: glnichols@edc.ca

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2016-12-15

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EDC FINANCES RUSSIAN PURCHASE OF NORTEL CELLULAR TECHNOLOGY

News Release

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