The financial statements for the six months of 2006 are prepared in accordance with International Financial Reporting Standards (IFRS) and are presented in the extent of Unaudited Consolidated Balance Sheet, Unaudited Consolidated Statement of Operations, and the Notes to the Unaudited Consolidated Financial Statements for the 6 months of 2006. These reports do not have all disclosures required by IFRS, but their volume is sufficient to get an idea of the financial situation and the results of Company’s activity over the 6 months of 2006.

The IFRS financial statements comprise assets and liabilities and financial results of OJSC “Uralsvyazinform” and its 12 subsidiaries.

• Revenue increased by 8.3% as compared to 1H 2005, mainly due to revenue gains in:
  • Local services;
  • Mobile services;
  • New services (Internet, including broadband connections and ISDN, intelligent networks and others).
• Revenue growth in business segments totaled:
  Local services – 27.6%;
  • Mobile services – 22.8%;
  • New services (Internet, unregulated data transmission services, etc.) – 45.5%.
• OIBDA was up to 42.0% on 1H 2005. As of 1H 2006 OIBDA margin reached 34,9% (+8,3 p.p.). Operating margin, compared to 1H 2005, grew up to 19.7% (+4,7 p.p.)
• Total subscriber base reached 7,7 mln., including 4,1 mln. GSM mobile subscribers.

Financial results, US$ million*:

* Here and henceforth currency conversions are based on average exchange rates:
1H 2006 – RUR 27.62, 1H 2005 – RUR 27.98

Balance Sheet, US$ million:

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Unaudited Consolidated Financial Statements for the 6 months ended June 30, 2006

Conference call and webcast Uralsvyazinform 1H 2006 Financial Results under IFRS. 2006-2008 Financial Forecast