For the first nine months of 2002, OJSC North-West Telecom reported revenues of RUR 3,541,014 thousand, operating expenses of RUR 2,431,998 thousand and a net income of RUR 396,512 thousand.

As compared to the same period of 2001 revenues showed 23% growth and net income rose by 29%. The growth in revenues and net income outpaced a 22% growth in operating expenses.

Company’s financial statements for the reporting period reflect the consequences of creating provisions for bad and doubtful debts in the amount of RUR 250 mln: line 100 of the income statement (other operating expenses) and line 241 of the balance sheet (short term trade receivables). Other operating expenses accounted for RUR 523,522 thousand and trade receivables made up RUR 882,051 thousand.

The State still remains the largest debtor to the Company. Notwithstanding RUR 118 million compensation paid during the first nine months of 2002, trade receivables for telecommunications services provided to subsidized users totaled RUR 630 million as of October 1, 2002.

Trade receivables for telecommunications services provided to military forces that, in accordance with the President’s Decree, couldn’t be disconnected in case they do not pay on time, totaled RUR 44 million for the first nine months 2002.

OJSC North-West Telecom balance sheet and income statement for the first nine months of 2002 are to be published shortly on the Company’s web site.