Audit firm Ernst & Young Vneshaudit completed an audit of Far East Telecom’s consolidated 2002 financial statement on August 11, 2003.

All information in the consolidated financial report was presented taking into account the consolidation of seven Far Easttelecommunications operators, which occurred in 2002. 

Far East Telecom’s report reflects the company’s restructuring on the basis of consolidated equity status.  In accordance with this method the company records all line items in the consolidated business report at their historical cost, as though the merger had been effective as of January 1, 2002. 

In 2002 the company’s revenues reached RUR 5,665.6 million, of which RUR 5,545.1 million was derived from telecom services, including Internet access services for a total of RUR 219.7 million, and cellular services amounting to RUR 182.8 million.

Profit from operating activity stood at RUR 400.2 million, while pre-tax profit was 318.2 million and net profit rang in at RUR 73.7 million. 

Profit from operating activity stood at RUR 400.2 million, with pre-tax profit at 318.2 million and net profit for 2002 at RUR 73.7 million.  Profit per share was equal to RUR 0.50. 

Total investments at Far East Telecom were RUR 774.3 in 2002, of which RUR 732.8 million were allocated to fixed line telecom, and RUR went to other services. 

All financial indicators are shown based on the official dollar/ruble exchange rate quoted by the Central Bank of Russiaat December 31, 2002.

Far East Telecom’s audited consolidated 2002 financial statement was drafted in accordance with International Accounting Standards (IAS) and can be viewed on the company’s corporate website at www.dsv.ru