The Public Joint Stock Company Moscow City Telephone network has summed up the results of its financial and economic activities in 2002.

The year 2002 revenues of the Company (those from the sale of goods, work and services) made up 10.1 billion RUR, which is 27.3% higher than the relevant index in 2001. The outpacing growth of the revenues as set over against the costs enabled to generate the net profit of 1.13 billion RUR that surpassed significantly the last year's figure (336 million RUR).

At the same time, according to the 2002 statements, the Company incurred some losses due to its regulated services. Therefore, the PJSC MGTS leadership believes bringing the revenues from the said services up to the level commensurate with the current expenditures to be the Company's top-priority task for 2003.

The revenues in 2003 has made it possible to allocate 38% of the PJSC MGTS own resources, derived in the form of capital charges, to its capital investments which amount constituted 2.4 billion RUR.

The Company succeeded in retaining the rate of its capital renewals.

The cost of the fixed assets put into operation is over 3.1 billion RUR, which is 57.6% higher than that of the respective 2001 indicator. The net growth of the Network installed capacity made up 81.9 thousand numbers in 2002. In the reporting year, the broadband data network capacity provision was commenced.

The high rate of revenues generated in 2002 enabled PJSC MGTS to step up to implementation of the major task of the second phase of the Moscow City Telephone Network general upgrading, that is the replacement of analog exchanges with digital ones. During 2003, preparations will be made for replacing some 200 thousand telephone numbers annually as a sequel.

Attachment: the PJSC MGTS balance sheet for the year 2002 (in Russian).