North-West Telecom has summed up its financial/business activity in the 1st half of 2010 in accordance with the International Financial Reporting Standards (IFRS). The interim consolidated financial reporting is unaudited.

In accordance with IFRS, Company’s revenue grew by 8.1% in the 1st half of 2010 compared to the 1st half of 2009, having reached RUR 14,088 million. Operating income were RUR3,695 million in the 1st half of 2010, or 36% higher than for the similar period of the last year.

The EBITDA* was RUR 6,919 million in the 1st half of 2010, which is 22.6% higher than the figure for the end of the 1st half of 2009, with the EBITDA margin having grown by 6 p.p. to 49.1%, comparable to the business efficiency of the leading telecommunication companies.

The net income of N.W.Telecom according to IFRS in the first half of 2010 was RUR2,474 million, having increased more than twofold against the similar period of the last year. Moreover, the net income margin noticeably grew compared to the last year’s period, to make 17.6%.

This impressive growth of the business efficiency indicators of North-West Telecom is attributable both to the improved overall macroeconomic situation and to the successful marketing policy of the Company aimed at higher earnings.

The full text of the unaudited consolidated financial reporting of JSC North-West Telecom in accordance with IFRS for the 6 months of 2010 is presented on the Company’s website in the “Economy and Finance” section.

*The EBITDA indicator is calculated by the formula: “Profit (loss) before taxes from the continuing activity in the reporting period + wear and tear and amortization + financial costs – return on financial asset interests – return on pension scheme asset interests.