OJSC North-West Telecom has summed up the results of its financial and economic activities for the 1st six months of the year 2007 according to the International Financial Reporting Standards (IFRS). The intermediate consolidated financial reports have not been audited and are presented in the scope of the balance sheet , profit and loss report and notes to the financial reports. These reports do not contain all disclosures required according to the IFRS, however, their volume are sufficient to obtain an idea of the financial standing and the results of the OJSC North-West Telecom 's activities for the 6 months of 2007 .

According to the IFRS, the revenue from the core activities for the 1st six months of the year 2007 have amounted to 11,952 million roubles and expenses have amounted to 9,205 million roubles. OJSC North-West Telecom has shown once again the outstripping growth of revenue as compared to expenditure. thus, the revenue for the period under report has increased by 21.6%, while the expenses have increased only by 14.9%.

The largest growth has been observed in the revenue from intraareal connection services. In the 1st 6 months of 2007 it reached 1,472.8 million roubles, which is 120% more than in the 1st 6 months of 2006.   The increase in the revenue from intraareal connection s is accounted for both by legislative changes and by the proactive marketing policy of the Company in this segment and, as a consequence, an increase in the demand for this service .

A considerable growth has been observed in the revenue from new services and data transmission services, too: as compared to the same period of the previous year, it has grown by 70.0% and has amounted to 1,512 million roubles. The increase in the revenue from new services shows the success of the actions of OJSC N.W. Telecom aimed at mass promotion of the Internet broadband access services under the @vangard trademark and at strengthening the positions in the B2B segment .

The net profit of OJSC North-West Telecom for the 1st six months of 2007 according to the IFRS has been 1,635 million roubles, which is 58.6% higher than for the 1st six months of 2006.

EBITDA for the 1st six months of 2007 has amounted to 4,681 million roubles, having increased by 34% as compared to the 1st six months of 2006, and the EBITDA margin has grown by 3.6 p.p. as compared to the same period of the last year and has amounted to 39.2%.

"The successful results of OJSC North-West Telecom for the 1st six months of 2007 according to the IFRS show the efficiency of the strategy pursued by the Company: the strengthen ing of the market positions in the Internet access and data transmission segment, the aggressive marketing policy and strict control over the expenses", says Vladimir Akulich , General Manager of OJSC N.W.Telecom .

The complete text of the unaudited consolidated financial reports of OJSC North-West Telecom according to the IFRS for the six months of 2007 is presented on the site of the Company in the Economic and Finance section.