• Revenues increased by 19% over 1H 2005. The main growth drivers were increased local rates (monthly subscription fees for local services), further subscriber additions in fixed, mobile and Internet services.
• OIBDA grew up to 31% on 1H 2005 as of 1H 2006. OIBDA margin totaled 38,4%. Operating margin was up to 26,5% on 1H 2005.
• Revenue growth in business segments reached:
  • local services - 19%;
  • revenues from operators - 55%;
  • mobile services - 352%;
  • Internet and unregulated data transmission services - 89%.
• Overall subscriber base totaled 7,7 mln., including 4,1 mln. in GSM.
• June 22, 2006 – the company held 2005 Annual General Meeting which elected the BoD members and validated the amount of dividend payment on ordinary and preferred shares, as well as introduced amendments and supplements to internal company documents.

Financial and operational highlights:

* Here and henceforth currency conversions are based on average exchange rates: 1H 2006 – RUR 27.5, 1H 2005 – RUR 28.1
** including subsidiaries

Anatoly Ufimkin, CEO comments on 1H 2006 results: ‘In the first half of the year we concentrated on the adaptation to the new market conditions which involved liberalization of the long-distance market, new rules interconnection rules and, in the near future, the CPP principle. In our view, the company has carried out all the necessary preparations, and the reported results are a good evidence of that. Despite the loss of revenues from long-distance services, Uralsvyazinform has been able to increase its revenue due to the synergetic effect of consolidation of mobile and Internet subsidiaries and the outrunning growth of these segments. Revenues of the Internet segment have doubled. The half-year has demonstrated a great success in terms of our xDSL promotional program. The number of DSL subscriber has more than doubled for the first six months, while we expect it to exceed 100 thousand by the end of the year’.

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Complete accounting statements of Uralsvyazinform as of 1H 2006 may be found in the Financials section