On May 5th, 2009 the Company releases its financial and economic results for the 1st quarter 2009 by the Russian Accounting Standards (RAS).

Revenue increased 6% YoY to RUR 6,392 mln , including RUR 5,909 mln from sale of communications services.

The main revenue drivers were new services (Internet and data transmission) and intra-zonal access, which rose 23% and 15% respectively as against the 1st quarter 2008. In absolute terms, the revenue from new services amounted to RUR1,190 mln and from intra-zonal access to RUR636 mln.

That growth was reached due to broadband subscriber’s base increase, it exceeds 700 thousand users as well as a greater demand for intra-zone access

In the 1st quarter 2009, NWT’s costs rose 20% YoY to RUR5,345 mln. The rise in expenses is due mostly to an increase in amortization charges in connection with a large-scale investment program implemented in 2008 and a consequent significant commissioning of fixed assets in 2008, rise in expenses on materials, electric power and services of outside organizations in connection with a rise in the cost of services as well as due to a greater volume of serviced equipment.

North-West Telecom’s net income amounted to RUR 90 mln. As compared with the same period of the past year, EBITDA* fell 35% to RUR1,755 mln. EBITDA margin for the period under review was 27.5% (-17.6 p.p. as compared with the same period of the past year).

Declining of North-West Telecom’s macroeconomic efficiency in the 1st quarter 2009 is due to such macroeconomic factor as a considerable increase in the FX loss/profit (RUR1,095 mln loss in the 1st quarter 2009 as against RUR67 mln profit in the 1st quarter 2008).

Without the influence of FX loss, EBITDA* rose 7% as against the same period of the past year to RUR 2,850 mln and the EBITDA margin for the period was equal to 44.6% (+0.6 pp YoY).

The Balance Sheet and the Profits and Losses Report of OJSC NWT for the 1st quarter 2009 are available on NWT’s corporate web-site, Economy and Finance section.

* EBITDA is calculated according to the following formula: “before-tax profit (loss) + interest payable – interest receivable + depreciation and amortization of fixed assets + leasing expenses”.