OJSC North-West Telecom has summed up its business results for the 1st quarter of 2008 by the Russian Accounting Standards (RAS).

By the results of the 1st quarter, the returns were RUR 6,047,000,000, of which, RUR 5,635,000,000 from sale of communication services. Compared to the similar period in the last year, the returns grew by 5.5%.

The Company’s costs were RUR 4,445,000,000 in the 1st quarter of 2008, having increased by 10.2% against the last year’s similar period. The cost increase was mainly due to higher amortization costs related to a sizeable commissioning of fixed assets in 2007.

The highest growth was recorded for income from new, intrazonal, and local communication services, which increased by 55%, 6.3% and 4.6%, respectively, against the similar period of the last year. In absolute terms, the returns from new services were RUR 990,000,000, from intrazonal communication, RUR 555,000,000, and from local communication, RUR 3,210,000,000. The income growth against the 1st quarter of 2007 is attributable to a significant increase in the number of the Company’s broadband Internet access subscribers, to a higher demand for intrazonal communication services, and to the new tariff plan system of payments for local communication services effective from February 1, 2007.

N.W.Telecom’s net profit increased by 23.3%, amounting to RUR 1,243,000,000. The EBITDA value exceeded the last year’s similar value by 19.7% to make RUR 2,719,000,000. The EBITDA margin reached 45% by the results of the reporting period, which is 5.4 points higher than the similar figure for 2007.

The Balance Sheet and Profit and Loss Statement of OJSC North-West Telecom for the 1st quarter of 2008 are placed on N.W.Telecom’s corporate website in the "Economy and Finance" section.