Re Contract

Intec Telecom Systems PLC
24 August 2004



Intec extends relationship with VimpelCom with contract worth over $500,000 for
                new InterconnecT Automated Reconciliation system



August 24, 2004: Intec Telecom Systems, a global provider of operations support
systems (OSS) for fixed, mobile and IP/next-generation networks, today announced
it has signed a contract with VimpelCom, one of Russia's leading providers of
wireless telecommunications services, for Intec's InterconnecT Automated
Reconciliation (InterconnecT AR) solution. The deal, worth in excess of
$500,000, will allow VimpelCom to automate the process of reconciling incoming
invoices and outgoing bills for interconnection charges. The deal extends
Intec's relationship with VimpelCom, which is already rolling out Intec's
market-leading InterconnecT billing system across its GSM properties in Russia.

VimpelCom currently has in excess of 15 million subscribers across Russia. "
VimpelCom is growing rapidly as Russian consumers sign up for GSM services in
ever increasing numbers," said Vimpelcom Vice-President, Mr. Andrei Kouznetsov.
"We are also growing the number of interconnection agreements we have with other
operators across Russia and around the world. Accurate interconnect bill
reconciliation is very important to ensure that we are not being overcharged by,
or overcharging, our partners. InterconnecT AR will also allow us to
substantially cut the time and cost associated with this business activity, and
we expect to achieve rapid return on investment through more accurate bills and
reduced operational expenses."

Interconnect bill reconciliation is a time-consuming and expensive process for
operators. Such bills commonly represent tens or even hundreds of millions of
Pounds of both revenue and cost to carriers, and even small delays and
inaccuracies in settlement can have a substantial impact on cashflow and
profitability.

"This is a key win at one of the world's fastest growing mobile carriers," said
Intec CEO, Kevin Adams. "Intec is expanding the portfolio of carrier grade OSS
it can offer to customers, with an emphasis on strong return on investment.
InterconnecT AR will help VimpelCom to cut costs in the complex area of bill
reconciliation as well as improving the accuracy and completeness of its billing
processes."

InterconnecT AR enables automation of the process for comparing interconnect
charge information from multiple interconnect accounting systems. It automates
bill reconciliation processes through exchange, comparison and settlement of
aggregated billing data. This helps avoid the overhead of manual handling of
individual transactions - reducing settlement time and improving the accuracy of
interconnect charges. InterconnecT AR supports both generic reconciliation and
reconciliation using established standards such as CODIFI and DETRAF.

Automated reconciliation offers the opportunity not only to speed up the
settlement process, but also to make better use of resources, reduce operating
costs and streamline business processes. Automatic reconciliation shortens
settlement cycles by automating a number of processes and reducing the risk of
disputes. Cash-flow management is improved, as amounts payable and receivable
can be traced and monitored closely at different stages. Automatic
reconciliation need not be restricted to a simple comparison of rated
information: it can also be used to identify areas of dispute and suggest
potential resolutions. It can also provide automatic adjustments. Financial risk
can be minimised by operators agreeing to pay an amount on the understanding
that there will be a later adjustment after reconciliation.

Press Contacts:
Intec Telecom Systems:
Intec Corp.   Andrew Rodaway       [phone]      [e-mail]
US            Rosemary Mount       [phone]          [e-mail]
CALA          Kelly Herring        [phone]          [e-mail]

Financial Dynamics:
              Edward Bridges       [phone]
              James Melville-Ross
              Cass Helstrip







About VimpelCom

VimpelCom (NYSE: VIP) is one of Russia's leading providers of wireless
telecommunications services. The company operates under the 'Bee Line GSM'
brand, one of the most recognized brand names in Russia. VimpelCom is recognized
for introducing two digital cellular communications standards in Russia. It
built the first dual band GSM-900/1800 cellular network in Russia and leads the
development and emergence of the mass consumer market for wireless
telecommunications in Russia with prepaid products.



VimpelCom offers telecommunications airtime and value-added services through GSM
and D-AMPS wireless networks, with around 98% of its subscribers using GSM. It
provides interconnections with other fixed and mobile networks and access to
roaming - all under contract and prepaid payment plans. The VimpelCom Group's
license portfolio covers approximately 94% of Russia's population (136 million
people), including the City of Moscow, the Moscow Region and the City of St.
Petersburg.



As of May 27, 2004, VimpelCom's total number of subscribers was 14.93 million,
with 6.22 million subscribers in the Moscow license area and 8.72 million
subscribers in the regions outside Moscow. VimpelCom was the first Russian
company to list its securities on the New York Stock Exchange (NYSE) in November
1996. Its ADSs (American Depositary Shares) are traded under the symbol "VIP".



About Intec Telecom Systems



Intec Telecom Systems is the world's leading Operations Support Systems ("OSS")
product vendor for fixed, mobile and next-generation networks (i.e. WLAN, 3G and
IP), with more than 580 installations of its products worldwide in over 400
customers.  Founded in 1997, Intec was listed on the London Stock Exchange
(Code: ITL.L) in June 2000. In 2003 Intec reported revenues of £50.7 million,
with adjusted net earnings after tax of £4.1 million.



Intec's product portfolio includes:

•         Inter-mediatETM - convergent mediation solution

•         InterconnecTTM - inter-carrier billing including US CABS and ITU-based
          settlement

•         Inter-activatETM - flow-through provisioning and activation

•         Intec CPMTM - end-to-end content partner management

•         Intec DCPTM (Dynamic Charging Platform) - a real-time pre/post-paid
          charging interface between the network and the back office



Intec's customer base includes, among others, BellSouth, BellSouth Peru, Brazil
Telecom, Cable & Wireless, Cesky Telecom (Czech Republic), China Unicom, COLT
Telecommunications, EBT (Taiwan), Eircom (Ireland), France Telecom, Hutchison
3G, Maxis (Malaysia), Nitel (Nigeria), Reliance (India), Singtel Optus
(Australia), O2 Ireland, Orange, Telecom Argentina, Telecom Egypt, Telecom
Italia, Tiscali, TPSA (Poland), Swisscom, T-Mobile International, Telia
(Sweden), Telefonica, Telkom South Africa, Telstra, US Cellular, Westel
(Hungary), Vodafone, VimpelCom (Russia), Vivo (Brasil) and Verizon.

For more information on Intec Telecom Systems, visit the website at http://
www.intec-telecom-systems.com



                      This information is provided by RNS
            The company news service from the London Stock Exchange                  UQC