Moscow, 10 March 2005. OAO “NOVATEK” (RTS: NVTK) one of the leading natural gas producers in Russia today announced record earnings in its third quarter and nine months 2004 consolidated interim condensed financial results prepared in accordance with International Financial Reporting Standards (“IFRS”) and reviewed by PricewaterhouseCoopers.

Net profit for the nine months ending 30 September 2004 totaled RR 4,062 million, or RR 1,808 per share (basic and diluted), compared to RR 1,802 million, or RR 1,131 per share for the same period in 2003. For the third quarter 2004, net profit increased 149% to RR 1,744 million or RR 776 per share (basic and diluted) from RR 699 million, or RR 439 per share. Net profits for both periods rose mainly to significant increases in natural gas and liquids production, together with continued favorable market conditions.

Total revenues and other income grew by 60% to RR 18,309 million for the nine-month period ending 30 September 2004 from RR 11,451 million in the corresponding 2003 period. For the three-month period ending 30 September 2004, total revenues and other income rose 14% compared with 2003, which included the affect of the divestiture of our non-core oil and gas construction segment.

Revenues from natural gas, liquids and oil products sales increased by a substantial 82% to RR 15,222 million in the nine months ended 30 September 2004 as compared to RR 8,286 million in the nine months ended 30 September 2003. For the third quarter 2004, revenues from natural gas, liquids and oil products  increased 39% to RR 4.875 million compared to the 3,517 million in the corresponding period in 2003.

The full set of interim consolidated condensed IFRS financial statements and notes thereto are available on the Investor Relations part of the web- site https://www.novatek.ru/eng/to_investors/financial_reports/

Cautionary statement relevant to Forward-looking information

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of NOVATEK. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that we cannot predict with certainty. Words such as “anticipates”, “expects”, “intends”, “plans”, “targets”, “projects”, “believes”, “seeks”, “estimates”, and similar expressions are intended to identify such forward-looking statements.  These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.   Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Press service of OAO NOVATEK
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Investor Relations Department
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