North-West Telecom JSC presented its results for the first quarter of 2005 according to the Russian Accounting Standard. The sales proceeds amounted RUR 4,906,839 thousands, including 3,344,974 for the provision of communication services. In comparison to the same period last year the sale proceeds increased by 46.7%, including 47% for the provision of communications services.

A considerable increase in proceeds results from the affiliated with “Lensvyaz” JSC and “Svyaz” of the Republic of Komi JSC by North-West Telecom which came into effect on 1 October 2004 and thus in the first quarter of 2004 their results were not included into the accounting reports of the North-West Telecom JSC.

The comparable data (including the financial indices of the affiliated companies for the first quarter of 2004) shows that the growth rate of North West Telecom JSC for the first quarter 2005 in comparison to the same period of 2004 was 18.3%. The increase in profit mainly resulted from the rise of local rates and the increase in proceeding from Internet services and other new services. The proceedings from the unmanaged telecommunications services in the first quarter of 2005 increased by 36.4% in comparison to the same period last year.

The cost of the provided services was RUR 3,715,241 thousands, including 3,652,394 for the provision of communication services.

EBITDA in the first quarter 2005 increased by 16.4% as compared to last year and was RUR 1,506,183 thousands.

The net profit of North-West Telecom JSC decreased by 6.3% as compared to the same period last year and was RUR 637,468 thousands. The decrease in net profit in the first quarter of 2005 in comparison to the same period last year is a result of a large one-off financial transaction in the first quarter of 2004.

The Balance Sheet and the Lost & profit report of North-West Telecom JSC in the first quarter 2005 can be found at the corporate web-site of the company under the section «Economics and Finances».