North-West Telecom JSC released results for the year 2008 in accordance with the International Financial Reporting Standards (IFRS). The financial reports were audited by Ernst & Young LLC.

In accordance with the IFRS, in 2008 revenue rose 3.9% YoY to RUR 25,176 million. The operating expenses amounted to RUR 23,167 million, which is 14.4% YoY.

As the result, the 2008 operating income grew up 2.5% to RUR 4,596 million.

Revenue from local access, which increased 1% YoY to RUR 12,884 million, account for more than 50% of the Company’s revenue.

Revenue from data transmission and Internet access rose 42.8% to RUR 4,433 million. The share of the new services in the total revenue keeps growing: in 2008 it reached 18.4% as against 13.7% in 2007, evidencing a greater diversification of the Company’s business.

According to the results of 2008, EBITDA* under the IFRS amounted to RUR 9,614 million and EBITDA margin reached 38.2%.

North-West Telecom’s net income in accordance with the IFRS amounted to RUR 2,561 million..

As in the past year, North-West Telecom prepared the annual reports in accordance with the IFRS before the annual general meeting of shareholders, thus providing its shareholders with a quality and comprehensible tool for evaluating the Company’s performance in 2008.

The consolidated financial reports of North-West Telecom in accordance with the IFRS for the year 2008 and the notes to it are available on the NWT corporate web-site, Economy and Finance section.

*EBITDA is calculated according to the following formula: profit for the accounting period + profit tax + depreciation and amortization + financial expenses – income profit.