In 1Q 2003 profit derived from the sale of goods (work and services) stood at Rub 1.45 billion, which is 23.4% more than during the same period in 2002 (Rub 1.20 billion).

All in all, the company generated Rub 1.45 billion from revenue of telecom services sold.  Increase in tariff revenue compared to last year was 23% (up from Rub 1.18 billion).  The largest profit center for the company turned out to be long-distance and international traffic, which was up 45%, followed by local traffic, which was up 35%.

The main factors driving the increase in Far East Telecom's tariff revenues for 1Q 2003 were development of local traffic and increase in long-distance exchange traffic.

Increase in main telephone lines amounted to 11,900 lines, which was up 29% compared to this figure during the year-earlier period (9,200).

Increase in long-distance and international traffic stood at 25.2% (from 103,400 to 129,500) compared to the previous year, and at the same time a 10% decrease was registered in telegraph exchange (from 887,900 to 800,000).

Expenses for core activities of Far East Telecom rose by 25%, amounting to Rub 1,229.1 million. (up from 983.4 million).

Depreciation charges increased by 14% from 64.6 million to 73.7 million.  EBITDA rose by 18%, reaching Rub 218 million compared with Rub 184.6 million during the same period last year.  EBITDA to revenue was 14.7 based on the results of 1Q 2003.

Average salary per employee was Rub 8,295 in 1Q 2003, which is a 40% increase compared with 1Q 2002 (when this figure was Rub 5,919).

Compared with 1Q 2002 the average number of staff employed at the company dropped by 9% from 20, 826 and stood at 19,001.  This came as a result of the company's HR optimization policy.  Average revenue per employee increased by 34% from Rub 57,700 during 1Q 2002 and reached Rub 77,600.