Uralsvyazinform Represents 2006 IAS Audited Consolidated Financial Report

22.06.2007

Ekaterinburg – June 22, 2007 – Uralsvyazinform (RTS: URSI/URSIP, ADR: UVYZY/ UVYZYP), the leading carrier of fixed-line and mobile services in the Urals region, Russia reports audited consolidated financial statements for the year ended December 31, 2006 under International Financial Reporting Standards (IFRS). The financial statements were audited by OOO "Ernst and Young"

Revenue increased by 11.7% as compared to 2005 and amounted to US$ 1.2 bln. Although the company lost revenues in ILD/DLD services, the growth was due to revenue gains in mobile services, new services as well as services for operators.

Revenue from mobile services totaled US$ 374.3 mln. (+16.9% on 2005). The segment contributed 29.9% of overall revenues.

Revenues from new services (Internet, ISDN, intelligent networks, etc.) and data transmission services reached US$ 95.6 mln.(+46.9%). The segment contributed 7.6% of overall revenues.

Operating expenses in 2006 increased by 17.5% and totaled US$ 1.1 bln., mainly due to the growth in depreciation and amortization expenses related to fixed assets valuation (+34.1%) as well as personnel expenses (+22.4%) related to growth of pension liabilities expenses.

The fair fixed assets valuation accomplished in 2006 enabled the company to obtain a first unqualified auditor’s report.

Operational and financial highlights:*

Financial	2006	2005	Change, %
Revenues, US$ mln*	1,251.8	1,120.5	+11.7%
OIBDA, US$ mln	345.1	327.4	+5.4%
OIBDA margin	27.6%	29.2%	-
Operating profit, US$ mln	139.1	173.8	-20.0%
Operating margin	11.1%	15.5%	-
Profit before income tax, US$ mln	49.0	100.7	-51.3%
Net profit, US$ mln	30.6	67.2	-54.5%
Net margin	2.4%	6.0%	-
EPS	0.0008	0.002	-60.0%

* Here and henceforth currency conversions are based on average exchange rates: 2006 – RUR 27.1, 2005 RUR 28.3

To view complete accounting statements of Uralsvyazinform as of 2006 under IFRS click here

Please download full PDF version to continue with Financial Overview 2006.

You can also participate in the conference call (webcast) dedicated to Uralsvyazinform 2006 financial results under IFRS. To view the invitation, please,click here

For additional information, please contact IR department on tel. +7 343 379 1219, +7 343 379 1859 or e-mail: investor@gd.usi.ru.
The most recent company information is also available from this website and www.skrin.ru (complex disclosure information system) or URSI_RU page in Bloomberg system and URSI.RTS page in Reuters system.