Ekaterinburg – November 10, 2004 – Uralsvyazinform (RTS and MICEX: URSI/URSIP) the leading carrier of fixed-line and mobile services in Urals region reports the 9M 2004 financial and operational results under Russian Accounting (RAS).

• Revenue growth totaled 35% as compared to 9M 2003 mainly due to DLD and ILD traffic hike, local tariffs increase (monthly fee) and GSM subscriber base growth
• EBITDA grew by 30% versus 9M 2003 driving EBITDA margin to 35.7%
• Net profit increased by 21%. Net margin totals 9.1%
• Revenues from local services grew by 32%
• Mobile service revenues expanded by 28%
• Long-distance segment saw 36% rise in revenues
• Revenues from new services including Internet grew by 48%
• Total subscriber base reached 5.1 mln, including 1.8 mln GSM subscribers

Operational and financial highlights:

* here and henceforth currency conversions are based on average exchange rates: 9M 2003 - RUR30.97, 9M 2004 – RUR28.91
** including subsidiary business
*** according to ACM Consulting, all mobile operators working on the territory of Urals Federal district and Perm region

Vladimir Rybakin, CEO commented the results of nine months: “9M 2004 financial results are fully in compliance and even beyond our estimates. I would like to mention positive dynamics of key financial indicators: 35% revenue growth, 30% EBITDA rise. Capex increased x1.7 up to US$191.4 mln driven by the fact that the high-technology and rapidly developing industry requires investments at anticipating pace which can provide us good prospects on the market. Investments into the mobile segment take up the largest share in investment programme – about US$61 mln . This year main project in mobile segment was the launch of our own GSM network in Ekaterinburg and Sverdlovsk region. The network was launched on September 28, 2004. As a result, Uralsvyazinform GSM network has gained coverage of all 8 subjects of Russian Federation on the territory of the company’s presence.

On the whole, though the competition has been getting tougher, Uralsvyazinform has retained its leading position as the largest mobile operator in Urals Federal District and Perm region. Since the beginning of the year the mobile subscriber base of Uralsvyazinform and its subsidiaries has increased x1.7. As of October 1, 2004 the number of subscribers reached 1.8 mln."

To proceed with financial and operational overview please download Press release (PDF).

Complete accounting statements of Uralsvyazinform as of 9M 2004 may be found in Financials section

For additional information, please contact IR department on tel. (007 343) 379-12-17 or e-mail: investor@gd.usi.ru.
The most recent company information is also available at www.uralsviazinform.com or URSI_RU page in Bloomberg system.