As per the results of financial statement prepared in accordance with Russian Accounting Standards all planned figures of OJSC “VolgaTelecom” for quarter III of year 2004 are completed.

As per the results of quarter III of year 2004 OJSC “VolgaTelecom” proceeds amounted to 4 606 million rubles which is by 15,7 % more than the proceeds received in quarter III of year 2003. Communication services earnings of the Company grew, vs. the figures for similar period of 2003, by 16 % to 4 487 million rubles.

Total sum of expenses of ordinary activities amounted to 3 251 million rubles.

Sales profit grew by 2,3 % to 1 355 million rubles, and the balance sheet profit reduced by 37 % to 648,6 million rubles. Net profit of OJSC “VolgaTelecom” in quarter III of year 2004 amounted to 391,2 million rubles.

Sales profit margin amounted to 41,7 %, balance sheet profit margin - 20% and net profit margin - 12 %.

During the report period the number of lines per an employee increased by 12,8 % to 88,9 lines. Revenue per an employee increased by 21,3 % to 94,3 thousand rubles, the expenses per an employee amounted to 67 thousand rubles. As per the results of quarter III of year 2004 the revenue per a line amounted to 1 059,7 rubles (the rate of growth is 107,3%). The prime cost per a ruble of earnings –  0,71.