OREANDA-NEWS. On 18 February 2008 JSC Sitronics, a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS, announced that it has started the process of consolidation of a 100% stake in Kvazar-Micro Corporation B.V. SITRONICS currently owns a 51% stake in Kvazar-Micro. During the first stage of the transaction, the 36% stake will be acquired from Melrose Holding Company for US$ 116.9 million. The acquisition will be financed by a combination of cash and SITRONICS' stock. As a result of the transaction, Melrose Holding Company will acquire a 3.07% stake in SITRONICS. Kvazar-Micro will acquire the remaining 13% of its shares from Melrose Holding Company within two years.

Sergey Aslanyan, President and Chief Executive Officer of SITRONICS, commented: "Kvazar-Micro is the leading system integrator in Russia and the CIS which is growing faster than the market. Kvazar-Micro provides innovative technological solutions in a number of sectors, including education, medicine, transport and agriculture. The acquisition of the remaining stakes in Kvazar-Micro will take us to the next level in consolidation of our assets and creation of a unified company with the higher efficiency levels."