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IBS Group Member Provides ERP Support to Moscow City Telephone Network

RAMSEY, the Isle of Man, December 3, 2012 /PRNewswire/ --

Please refer to relevant legal information at the end of the document

IBS Group, a leading software development and IT services provider in Central and Eastern Europe, announced that IBS IT Services, a member of IBS Group, started providing integrated support to the Moscow City Telephone Network (MGTS) - one of Europe's largest telecommunications companies.

The SAP-based ERP for MGTS, commissioned in 2006, is currently used by over 1,000 people and integrates most of the company's business processes (including accounting, HR, various kinds of reporting, logistics, procurement, controlling, and other functions).

The IBS IT Services expert team works in close liaison with the client's competence center, providing remote user support and change management at requests from users and competence center staff (with processing deadlines specified in the service-level agreement and enforced through a system of substantial fines). The work of the two teams has already been completely aligned, which considerably streamlines the consultation and decision-making processes. The system is supported in compliance with the custom bilateral regulations, providing for both workflow organization and quality/quantity control of the services rendered. The regulations are a flexible tool modifiable at any time by agreement of the parties to meet the client's most recent needs or incorporate best practices developed through interaction of the teams.

Dmitry Ivitsky, Director of the IBS Service Center for Business Applications Support, comments: "A vote of confidence from a company like MGTS for our corporate information systems support approach means a lot to us and proves that we are on the right track developing a business based on civilized IT outsourcing in the Russian market. It is safe to say now that we have successfully completed our first task with MGTS - providing business applications support without compromising the quality of service - and are now methodically working to enhance the effectiveness and performance of the supported system, as well as its users' experience."

In 2012, IBS Group is scheduled to launch a number of other comprehensive outsourced ERP support projects for Russian and international companies.

About IBS Group Holding Limited

IBS Group is a leading software development and IT services provider in Central and Eastern Europe. Through its two principal subsidiaries, Luxoft and IBS IT Services, it offers a wide variety of information technology services, such as software development and IT services outsourcing, IT infrastructure and business applications implementation. IBS Group has business operations in Russia, Ukraine, Romania, Poland, Germany, Switzerland, the UK, the USA, Vietnam and Singapore. IBS Group employs more than 8,300 people worldwide. In the year ended March 31, 2012, the Group reported US GAAP consolidated revenues of USD816.3 million. IBS Group's Global Depositary Receipts are listed on the Regulated Market (General Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.F)

For more information about IBS Group please visit http://www.ibsgr.com

About Moscow City Telephone Network JSC

Moscow City Telephone Network JSC (MGTS) is one of the largest local wire communication providers in Europe. Its major shareholder is Mobile TeleSystems OJSC (MTS), owning directly or indirectly 99.1% and 69.7% of the MGTS ordinary and preference shares, respectively. Moscow City Telephone Network's constant priority is providing high-quality affordable telephone and internet connections for Moscow residents. MGTS services over 4.4 million subscribers, with more than 470,000 ADSL internet accounts. The company operates 253 automatic telephone exchanges, and its coin-box network currently features over 3,000 landline telephones.

The company's web site: http://www.mgts.ru.

Disclaimer

The information contained in this press release is not for publication, distribution or release, directly or indirectly, in any jurisdiction where such publication, disclosure or release would be unlawful. This press release does not constitute an offer for the sale of securities in the United States of America, Canada, Australia, Japan or any other jurisdiction in which an offer would be subject to legal restrictions.

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