“Nizhnekamskneftekhim” INC issued 2005 audited financial accounts per IAS prepared by “PricewaterhouseCooperAudit” PSC.

According to the accounts, optimization of a product range led to a rather higher rise of the gross and operational profitability than expected. The Company increased a share of products with higher VAT, that of polymers, like halobutyl and polybutadiene types of rubber, polystyrene. As a result, NKNK’s receipts ran to 6% higher than anticipated, regardless of the fact that the feedstock cost rise exceeded an average rise of prices for finished products over the year 2005.

Net profit of the Group (“Nizhnekamskneftekhim” INC and its subsidiaries) scaled down more than 2 times compared to the year 2004 due to the negative impact of exchange rate variations and financing of some social programs.