28.02.2011

To Our Stakeholders,

Geocell reaffirms its support of the Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations.

Being a leading mobile operator in Georgia, the company was the first to bring GSM services to the country, starting its operations in 1996 and taking the leading positions on the telecommunication market in Georgia. Today Geocell is part of TeliaSonera – a strong Telecommunication group with a global presence with 14 years experience as local company on Georgian market. We, Geocell, are a modern operator with strong local identity, supported by a strong international group of leading operators. We are proud to say that we have a profound understanding of the local customer, combined with the ability to offer world-class service and products based on the global know-how, a century-long industry experience and the leading technologies offered by TeliaSonera.

Our Communication on Progress report contains company actions and results achieved under the GCN umbrella, as well as Geocell commitment for adding value to community social and cultural life. The report covers 2010 period, reflecting company efforts to promote and sustain the four GCN areas: human rights, labor standards, environment and fight against corruption.

Corporate Social Responsibility is especially important factor for Geocell. In this direction the company runs long term social projects, which is positively reflected on the country’s welfare. Every innovation offered by the company is created first of all on the basis of customers’ needs. Taking care of cultural heritage, supporting education and sport, active involvement in integration of people with disability – is the main priority for Geocell.

The vision of Geocell is to be the indispensable part of the people’s communication. Indeed, communication has always been so important for the whole history of the mankind. There were different means of communication in different stages of the evolution. Today communication in its meaning is so much tightly linked with the most up to date technologies and Geocell is one of the leading providers for people’s communication at this stage of our evolution. That is where we see our company in and it further development.
Sincerely yours,

Osman Turan
Geocell CEO

Businesses should support and respect the protection of internationally proclaimed human rights based on Code of ethics and conduct, Personnel Policy Manual, Salary Policy, Regulation on termination and hiring acting within the company.

In it’s day-to-day business Geocell is governed by the Code of Ethics and Conduct and internal policies as well as principles, formalized in legislation by the Constitution of Georgia and the Labor Code.

The employment agreement is executed with each employee where all rights and responsibilities of the parties, conditions of labor, rest, labor payment etc. are provided for.

In addition, the Company offers to its employees a social package, which includes insurance programs, soft lending in the leading banks of the country, meal service, daily transfer fee, as well as a wide spectrum of training programs and guaranteed payment of income tax and deductions to the pension saving funds. In case of any unforeseen circumstances an employee may be aid paid and provided with the leave.

Currently, 338 employees are with Geocell throughout Georgia.

Every day all information of the current events is available at the company internal portal
http://net.intra/and the employees may freely express their opinions upon each issue via “employee feedback” message.

A wide network of our customer care offices and standardized dealer points are regularly
updated on web-site www.geocell.ge, which is created throughout Georgia and aims to provide with all necessary information at our clients and partners.

Company pays its special reference to numerous social actions and projects dedicated to integration problem of disabled people. Special prize for effective charity was given to Geocell for its charitable activities.

1.Businesses should uphold freedom of association and the effective recognition of the right to collective bargaining.

2.The elimination Of discrimination in respect of employment and occupation.

Based on Code of ethics and conduct, Labor contract, Labour Code of Georgia.

1. In Geocell the employment agreement is executed with each employee where all rights and responsibilities of the parties, conditions of labor, rest, labor payment etc. are provided.

Geocell to the utmost cooperates and renders assistance to various public associations, protecting the rights of the socially vulnerable wide sections of the population.

2. The Company observes the Labor Code of the Georgia and the Company’s Code of ethics and conduct.

1. It has been a long time, since Geocell cooperates with charitable fund ”Iavnana” by SMS voting aiming at assisting children from needy families, helping to raise funds for buying houses to these families and covering the expenses for higher education of the best students from families with low income.

Geocell cooperates with social TV show aiming at raising funds for children, needed in surgery or a special metical treatment. Charity short numbers are allocated for this purpose and the funds raised from these numbers are used for covering the medical expenses.

Giving help to the association of hearing and speaking impaired people offering special service package for easier communication, as well as providing with computer equipment and center of social adaptation.

Geocell is employing several persons from the association on the basis of the employment agreement where all rights and responsibilities of the parties

2. All new employees are involved into the orientation program, which allows to make the fastest acquaintance of the company and to become its integral part.

The personnel appraisal is performed based on the set objectives.

Business should support a precautionary approach to environmental challenges, undertaking initiatives to promote greater environmental responsibility and encouraging the development and diffusion of environmentally friendly technologies based on Code of ethics and conduct.

Geocell in performing its business does not generate a negative impact on the environment, moreover, the Company is striving for making thrifty use and care treatment.

Company’s policy is directing towards energy efficient use of its operations. Direct and indirect energy consumption is controlled and initiatives are constantly taken for driving all sorts of emissions, effluents and waste to the minimum. Almost all Radio Base Stations of the company are supplied from the central electricity channel, thus avoiding use of generators for its harmful emission. Also the constant maintenance of sites are followed up for timely changing of special lead batteries and their further recycling is done through special recycling companies, in order to eliminate the risk of negative impact on environment.

To protect the health of the company employees there used the controlled systems of air conditioning depending on the outdoor temperature as well there performed a regular replacement of filters and cleaning of air supply and air conditioning systems.

Aiming at water saving there were installed the water saving taps, to decrease the level of power consumption there were installed the power saving fluorescent lighting.

Following TeliaSonera CR policy, the company makes scheduled monitoring of the energy efficiency through its direct and indirect operations in its periodic CR reports.

Businesses should work against corruption in all its forms, including extortion and bribery.

Within the framework of implementation of this principle Geocell follows the Code of ethics and conduct.

For communication and fastest response to the inquiries of our clients the call center operates 24 hours a day