Celtro Expands Partnership With Russia's MegaFon Far East

Celtro Upgrades its DynaMate Backhaul Switches in MegaFon Far East's Mobile Network in Khabarovsk to Address Mobile Backhaul Network Migration to All-IP

Tel Aviv, Israel, May 6, 2010 - Celtro, a leading global supplier of mobile backhaul switching solutions,
announced that it is expanding its relationship with MegaFon Far East
(formerly MegaFon Khabarovsk), a subsidiary of MegaFon, one of Russia's
largest mobile operators. Celtro has already provided MegaFon Far East with
DynaMate backhaul switching solutions to support the mobile operator's
continuing expansion of network coverage through satellite and microwave
links. MegaFon Far East now plans to expand Celtro deployment in its
migration to an all-IP based mobile backhaul.

MegaFon Far East has been purchasing DynaMate mobile backhaul
switches from Celtro since 2004. The operator's mobile network, which spans a
vast geographical area covering more than 8 million square kilometers, has
been growing at a very rapid rate. Celtro's 2G/3G convergence solution has
enabled MegaFon to offer its customers advanced broadband services on its
legacy infrastructure, while dramatically decreasing network operational
costs. Now MegaFon Far East has declared its intention to use Celtro's DMT
systems in its future migration plans to an all-IP network.

"Celtro has played a significant role in helping MegaFon Far
East to manage its rapid network expansion and service delivery to remote and
isolated locations" said Krylov Valery Borisovich, Technical Director for
MegaFon. "We have relied on Celtro's mobile backhaul switching solutions in
the past, and we feel confident in its ability to help us expand our IP
coverage in the future."

"Our partnership with MegaFon Far East, and the other MegaFon
subsidiaries, has played a major role in establishing Celtro as a leader in
providing state-of-the-art solutions for the mobile backhaul," said Dmitry
Bidny, AVP Sales at Celtro. "Celtro is uniquely suited to the challenging
Russian mobile environment, and we are pleased to deepen our existing
relationship with such a forward-thinking provider as MegaFon Far East. We
look forward to playing a part in its migration to an all-IP network" he
continued.

About MegaFon

MegaFon is one of the largest providers in the Russian
Federation with over 30 million subscribers, and was the first all-Russian
mobile operator to roll out a GSM 900/1800 network and 3G mobile data
services. The company was founded in May 2002, and - together with its
subsidiaries - covers the entire territory of the Russian Federation with
population over 145 million. For more information, please visit
eng.megafon.ru/.

About Celtro

Experts in the mobile backhaul, Celtro provides innovative
switching solutions that empower mobile operators worldwide to improve
service delivery, increase network efficiency, and facilitate flexible
backhaul network evolution.

Celtro's patented technologies combine multi-service TDM, ATM,
Ethernet and IP/MPLS switching to enable smooth from legacy TDM/ATM networks
to an all-IP backhaul network. Leveraging unique and creative solutions
Celtro's solutions keep our customers one step ahead in the mobile broadband
revolution. Celtro's field-proven switching solutions are commercially
deployed by 80 top tier operators worldwide

    For more information, please visit www.celtro.com.

    Contact:
    Shlomit Tevet
    Director of Marketing
    Celtro Ltd.
    Direct: +972-3-9206545
    Mobile: +972-54-4730330
    Shlomit.tevet@celtro.com

Contact: Shlomit Tevet, Director of Marketing, Celtro Ltd., Direct: +972-3-9206545, Mobile: +972-54-4730330, Shlomit.tevet at celtro.com