In 2003 the company’s revenues are planned to be RUR 18,9 bln., that is + 27,8 % as compared to 2002*. The revenues from telecommunication services total RUR 16,9 bln., including revenues from local telephony – RUR 5,8 bln. (+23,2 %), domestic and international long-distance telephony – RUR 7,9 bln. (+22,0 %), mobile telephony* – RUR 2,0 bln. (+101,8 %), new telecommunication services – RUR 0,5 bln. (+66,8 %).

According to the company’s budget (business plan) expenses as of 2003 are expected to increase by 21,7 % as compared to 2002 and will amount to RUR 13,3 bln., where wages total RUR 4,0 bln. (+22,7 %), material expenditures – RUR 0,7 bln. (+8,5 %), Rostelecom interconnect fees – RUR 1,8 bln. (+21,1 %), depreciation - RUR 1,9 bln. (+31,4 %). The share of expenses in revenues amounts to 70 % (-5,4 %).

Thus, 2003 EBITDA is planned to be RUR 7,5 bln. (+41,2%), sales profit - RUR 5,6 bln. (+44,9 % as compared to the year 2002), pre-tax profit – RUR 2,6 bln. (+94,0 %), net profit – RUR 1,6 bln. (+99,6 %).

In 2003 the investment policy retains its focus on development of mobile networks (+554 thous. lines), upgrade and capacity extension of wire-line network (+356 thous. lines), further digitalization and deployment of intrazone fiber-optical and radio microwave lines (+2.1 thous. km and +1.1 thous. km respectively), promotion of new services. The company estimates that wire-line network will be 62% digitalized, while intrazone links will reach 37% respectively. Number of lines per one employee will amount to 90 (+14%). The company has scheduled for 2003 the introduction of time-based billing in Kurgan, Sverdlovsk, Chelyabinsk regions, Khanty-Mansyisky Autonomous District, and Yamalo-Nenetski Autonomous District. There are also plans to consolidate company's mobile business under a unified brand.

The total Uralsvyazinform’s Capex is planned to reach RUR 5,6 bln. in 2003 (+21,8% as compared to 2002). The expected amount of fixed assets to be put in operation is RUR 5,7 bln. The bulk of investments will be placed in Sverdlovsk region (RUR 1 049 bln.) and Khanty-Mansiysk Autonomous Region (RUR 1 002 bln.). The investments will be 57% financed from internal funds, including depreciation (42%) and profit (15%); borrowed funds will cover 43% of investments, including bond issuance (36%) and credits (7%). The bond issue with the value of RUR 3 ml. is expected to be placed in June 2003.

*excluding revenues from subsidiaries