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"A1+" TV Company was operating based on a five-year license, issued on January 22, 1997, by the Ministry of Transport and Telecommunications.

The term of "A1+" TV Company expired on January 22, 2002, thus terminating also its right to broadcast. According to the existing RA legislation, a license must be issued by means of a tender, for a seven-year term, to permit the broadcasting on any (including also the 37 th) frequency. A tender for a license means that more than one company may apply for obtaining the right to broadcast on a given frequency and the winner shall be announced and license shall be issued to the company which submitted the best proposal.

During the tender for the license held from March 28 through April 2, 2002, "Sharm" Company was announced as the winning bidder, due to the fact, that its proposal most closely corresponded to the basic standards specified by law. "A1+" TV Company's proposal, in essence, was a description of its past and present activities, whereas the bidders were required to present specific plans regarding their future development.

"A1+" TV Company was never deprived by anyone of its right to broadcast, it simply failed to win the tender announced for a new license due to the fact that another company submitted a better proposal.

"A1+" TV Company has the opportunity to participate in tenders to be announced for the other frequencies based on identical and equal terms along with other competitors.

Representative of the National Commission on Television and Radio

Edith Khachatourian, Esq.