Ascom S.A. (the "Company") today announced that in connection with the ongoing criminal investigation initiated by the Agency for Fighting Economic Offences and Corruption of the Republic of Kazakhstan against Kazpolmunay LLP ("KPM") and its general director, on November 12, 2009, the Mangistau Regional Court (the "MRC") upheld the ruling of Aktau Town Court, which on September 18, 2009, ruled that the General Director of KPM was guilty of allowing KPM to operate a main pipeline without obtaining a state license and sentenced him to 4 years of imprisonment and ordered KPM to pay to the Republic of Kazakhstan approximately US$ 145.0 million in fines. KPM and its General Director will appeal the ruling and will continue to pursue all legal remedies available to defend against the charges brought forward under the criminal investigation.
There have been no court hearings or material developments in connection with the ongoing criminal investigations of Tolkynneftegaz LLP ("TNG") and its former General Director.
Despite the ongoing difficulties facing KPM and TNG in Kazakhstan, and the fact that neither company has any assurance that their legal challenges will ultimately prevail, KPM and TNG continue their efforts to resolve the ongoing claims and litigation matters with the Kazakh authorities.