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November 6, 2003

3Q03 results of developing new technologies and value-added services by "UTK" PJSC

3Q03 revenues from value-added services have made RUR 143 317 ths, a 164.9%-increase over 3Q02. As before revenues from Internet make the most part of revenues from VAS (57%).

Test operation of broadband access equipment Nortel Networks Shasta 5000 is being prepared now in "UTK" PJSC branch "CNT". This equipment will serve the platform for providing a full set of multimedia services.

"UTK" PJSC branch "Kubanelectrosvyaz" is now providing inquiry, information and operator's services based on new equipment of the company "Avaya" which allows to introduce such new profitable services as outsourcing, CRM-solution, processing of customers' requests through Internet, information on tickets and products, conducting information and advertising campaigns, polling and voting resulting in formation of packet of services for customers, etc.

In 3Q03 "UTK" PJSC prepared the contracts on delivery of Simposium (Nortel) equipment for creation of the call-center in the branch "Volgogradelectrosvyaz", the project is to be completed by the end of the current year.

In 3Q03 86,3 thousand pre-paid telephone cards (STK) were sold generating revenue of RUR 6,7 mln. So the year 2003 observed stable growth rate of revenues from selling STKs - volume of their sales increased by 20% every quarter.

IP-telephony services are in stable demand. "UTK" PJSC branch "Center of New Technologies" generates the highest revenue from providing IP-services. Total 3Q03 IP-telephony traffic reached 1,6 million minutes versus 0,12 million minutes in 2002 (13-times increase!). 3Q03 IP-telephony traffic is up 80% compared to 2Q03 and up 190% compared to 1Q03.

Number of ISDN equipped ports is up 18% in 3Q03 reaching 2107 ports. Intelligent network equipment was delivered for branches "Kubanelectrosvyaz" (2 nodes) and "Electrosvyaz" Stavropol Territory" (1 node) in September 2003?. It is planned to launch the first phase of intelligent services' provision (pre-paid cards, televoting, fax/voice-mail, call at the cost of the calling party).

Within the framework of realization of the project of building broadband interactive cable TV network "UTK" PJSC has developed the concept of the network construction and is cooperating now with potential participants of the forthcoming tender. Test zones are to be located in Stavropol and Krasnodar.





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