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SAMSUNG SNAGS RUSSIAN PACT

SEOUL, South Korea-Samsung Electronics Co. announced a contract with Russian telecommunications company IV Telecom to provide equipment for a digital cellular phone system using Code Division Multiple Access technology.

Samsung said the $2 million contract represents the first export of a CDMA system by any company in the world. Samsung said it initially will supply two CDMA switching systems and base stations, along with supporting terminal equipment.

The Russian government intends to make CDMA the national standard as part of the 10-year Russian Telecommunications Modernization Plan, a $55 billion project, Samsung said. Should the Russian government make CDMA the national standard, IV Telecom plans to purchase $6 million in additional hardware from Samsung to build a network serving 15 cities.

Samsung has a number of telecommunications interests in the former Soviet Union. The company said it formed a joint venture with Svyazinfon Co. of the Dagestan Republic called Dagestan Cellular Network Co., to provide analog cellular telephone service. In 1995, Samsung formed a joint venture with Crosna to produce telecommunications hardware in Moscow. In addition, the company said it is in discussions with companies in western and eastern Russia and in contact with telecommunications service companies in the “Gold Ring Industrial Belt.”

IV Telecom offers a full range of communications services and is preparing to offer Samsung’s paging system and pager services and move into the digital service business.

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