OJSC North-West Telecom has increased the forecast of the amount of net profit in the year 2005.   

On 27th June 2004 a meeting of the Board of Directors of OJSC North-West Telecom was held, which approved the proposals of the Management Board on introducing adjustments to the Company's budget for the year 2005.      

The Board of Directors approved the forecast of OJSC North-West Telecom's net income for 2005 to the amount of RUR 1,800 million, which is 19.6% higher than the earlier planned volume . Thus, as compared to the actual index for 2004, the growth of net income for 2005 will amount to 35.6%.

The increase in the forecast of OJSC NWT's net income is accounted for by the measures of cutting down the costs and ensuring higher profit growth rate taken according to the recommendations of the Board of Directors (see the Press Release dated 17.05.05). The total reduction of operating and non-operating expenses amounted to RUR 386 million in 2005 .  

Besides, the adjustment of the budget for the year 2005 has been caused by the accelerated rate of NWT's investment programme implementation and by the development of new promising projects making it possible to optimize the efficiency and to increase the commissioning of the line capacity.

The new plans of OJSC North-West Telecom for the year 2005 are in line with the medium-term strategy of the company, that implies supporting the positive dynamics of the economic efficiency growth rate .   

The plan for the basic financial and economic indices for 2005 is as follows:*   

*All financial indices are given according to the Russian Accounting Standards (in 2004 the results of the branches Lensvyaz and Svyaz of the Republic of Komi are consolidated for the 4th quarter ).