LAN-NET COMMUNICATIONS within the framework of implementing its strategy for the re-organization and development of the company announced today the signing of a long-term agreement with the company KARRE PROJECTS & HOLDINGS S.A. for the assignment of contracts and purchase rights as well as the supply of telecommunications equipment to the latter from the former against the amount of EUR 2.5 million. With the said project KARRE will undertake the direct provision of commercial and technical support in installations of call centers and network equipment of the manufacturers "Nortel Networks" and "Matra" in the corporate customers' network of LAN-NET.

At the same time, inventory of telecommunications equipment for secondary installations were sold for a total value of EUR 2.5 million to the company Lakehall Technologies Ltd., which is a supplier of used telecommunications equipment in Cyprus and the Middle East. With these activities, on the one hand, LAN-NET ensures the high quality of services that is provided in its clients' network, while because of the above-mentioned transfer it decreases its operating cost, creating thus the conditions for the application and implementation of its short-term objectives and focusing its efforts on its basic purporse, i.e. the provision of telecommunications services.