The following is a summary of Siberia Telecom/s 1H 2003 financial results:

- Revenue from sale of goods (work and services) stood at Rub 6.9 billion, which is equal to 122.8% compared with the same period last year (Rub 5.6 billion);

- Sales profit totaled Rub 1.5 million, which represents an increase of 120.7% compared with the year-earlier period (Rub 1.3 million);

- Pre-tax profit reached Rub 967 million, which is up 179.2% compared with the same period last year (Rub 540 million);

- Net profit stood at Rub 651 million, which represents a gain of 244% compared with the same period last year (Rub 267 million).

 (for further details, see accounting report pro-formas # 1 and 2)

In addition, the breakdown of the company’s expenses looked as follows:

- Payrollexpenses– 33.8%;

- Deductionsforsocialrequirements– 11.9%;

- Depreciation of fixed assets and intangible assets – 9.0%;

- Material expenses (including major repair work);

- Rostelecom payments – 14.3%;

- Other expenses – 20.0%

The volume of long-distance traffic (outgoing paid LD connections) was 803,448,,000 minutes, which is 119% more than the same period last year (671,994,000 minutes).

The volume of international traffic (outgoing paid LD connections) was 41, 328,000 minutes, which is 110.8% more than the same period last year (37,284,000 minutes).

The total amount of the company’s capital investments during January – June 2003 was Rub 1.2 billion, according to preliminary data.

During the first six months of 2003 the company entered 97,098 new urban lines into service and 9,164 rural lines.