OREANDA-NEWS. June 29, 2007. The consolidated financial statements include the assets, liabilities and financial results of Sibirtelecom OJSC (the “Company”) and its subsidiaries, main activity of which is to provide cellular and other telecommunication services.

In 2006, the Company’s consolidated revenues amounted to 30,174.6 million rubles, having increased by 2,742.5 million rubles, or 10.0% against 2005.
The main components of the Company’s revenue structure are revenues from cellular services and local telephone calls (27.4% and 26.8% accordingly).
Substantial elements of the Company’s revenues are revenues from national operators (15.2%), intrazone telephone services (12.3%) and new services – Internet, data transfer, IP-telephony, Intelligent network services (5.7%).
The main factors of revenue increase in the reporting year are growth of cellular and fixed communications subscriber base, broadband access services development, change in relations between telecom operators and coming into force principle “Calling Party Pay” according to amendment to article 54 of Federal Low “On Communications”.

In 2006 in comparison with 2005:

�� The largest increase of revenues is the increase of revenues from rendering services to national operators amounted to 2,497.7 million rubles or 119.3% due to change in relations between telecom operators according to regulatory legal acts in telecommunication branch (since January 1, 2006 the revenue is accrued not only for the termination of a call to the network of the operator, but for the initiation of the call from the operator’s network as well) and increase of rendered services to
connected operators.

�� Increase of revenues from cellular services amounted to 1,767.0 million rubles or 27.2% due to increase of subscribers base (within the reporting period the number of subscribers to cellular communications services has increased in 1.6 times and amounted to 3.14 million).

�� Increase of revenues from rendering of local telephone calls amounted to 1,095.7 million rubles or 15.6%. Main factors are - the increase of subscriber base (the number of basic telephone sets increased by 141.5 items or 3.5% and amounted to 4,197 thousand items at the end of 2006) and tariff indexing since November 1, 2005.

�� Increase of revenues from intrazone telephone communication services amounted to 1,024.9 million rubles or 38.3% due to including into that item since July 1, 2006 revenues of fixed line subscribers’ connections to mobile line subscribers in the same settlement, increase of revenues from connected operators’ channel leasing, change in a way of registering revenues from connected operators’ subscribers connections.

�� Increase of revenues from providing of new services (Internet, data transfer, IPtelephony and Intelligent network services) amounted to 516.5 million rubles or 43.4% due to increase of revenues from dial-up and broadband Internet access services (Internet traffic of parent company with the access through the public telephone network increased by 30.7% and amounted to 2,643 million minutes; volume of information transferred via Internet through dedicated channels increased by a factor of 3.7 and amounted to 619 TByte).

The complete consolidated financial statements of Sibirtelecom OJSC for 2006 in accordance with International Financial Reporting Standards are available in the Company’s corporate web-site at:
http://www.sibirtelecom.ru/english/investors/financial.php (the English version) and http://www2.sibirtelecom.ru/sbt_msfo (the Russian version).