ByCell Telecommunications India Pvt. Ltd.

On October, 13th 2005, ByCell Holding AG incorporated ByCell Telecommunication India Private Limited, its 74%-owned subsidiary in India in order to launch a prospective mobile operator in GSM-1800 standards in five Telecom Circles in India, namely, Assam, Bihar, Orissa, West Bengal and North East. ByCell Holding AG received the FIPB approval to hold 74% shares in ByCell Telecommunication India Private Limited on January 17th, 2006 and on January 31st, 2006 ByCell Telecommunication India Private Limited applied for UASL licenses (to Establish and Operate Public Mobile Network in GSM 1800 Standard) for the above-stated service areas. The Indian Partner holding the 26% stake in ByCell Telecommunication India Private Limited is Hyderabad-based Jayalakshmi Group www.jayalakshmi.com, which has business interests in tea, tobacco, cotton spinning and power sectors.

Provision of voice and data services in India embodies both a great challenge and an opportunity in that the territory to be covered is large and has relatively densely populated urban and rural areas. The areas regions to addressed are in circle B, West Bengal and in circle C, Bihar, Orissa, North East and Assam. (link to the description of the states and telecommunication service areas):

The opportunity is to implement the newest technologies to cost effectively deliver voice and data services to remote areas that otherwise would not receive affordable services in the nearest future. ByCell India is ready to meet the challenge of providing service to the neediest parts of the country where people live, work and travel using the latest technological solutions available on the market at prices people can afford.

Within the term of the license, ByCell India will commit to providing voice and data to the underserved population in the rural areas. ByCell India believes the extension of services to these areas will contribute to their economic development, as well as will bring substantial returns for the operator, especially in long term.

We believe our regional focus will allow us to more effectively address the market and that the market of 260M people (living in the territories of Eastern&North-Eastern India) is large enough to support the existing number of operators.

The high rate of growth in a given sector of economy is dependent on the macroeconomic performance in the country. The high rate of GPD growth at 7% per annum positively contributes to the rate of mobile penetration with spin offs including the increased number of development programs, especially in the IT sector of the country.

The Indian market of mobile communication is the most attractive in Asia in long-term. The country's stability and growth is consistent and as such is well positioned for continued macro economic expansion.