According to the results of business operations of OJSC North-West Telecom in the 1st quarter of 2002, the revenues amounted to RR 1,130,452,000. The costs of product sales, work, and services were RR 766,282,000. The net profit amounted to RR 131,519,000.

The revenues were primarily affected by the new local telephone service tariffs effective from January 1st, 2002. Currently, the subscriber fee for residential sector is RR 89.25 per month.

The results of Qr 1, 2002 showed receivables for communication services of RR 1,120,499,000.

The above amount includes approx. 480 million rubles to be recompensed by the federal budget to the North-West Telecom local communication services provided to beneficial categories of subscribers, and the debt of the “forces” whose telephones may not be disconnected for arrears under the RF President Decree.

The budget of St. Petersburg owes approx. 15 million rubles to the Company as a recompense for services to beneficial categories.

Some of these days, the balance statement of the North-West Telecom will appear on the Company’s web site.