OREANDA-NEWS. April 6, 2011. Uralsvyazinform (RTS: URSI/URSIP) the carrier of fixed-line, mobile and broadband services in the Urals region, Russia presents the non-audited financial statements for the year ended December 31, 2010 prepared under International Financial Reporting Standards (IFRS)1.

FINANCIAL HIGHLIGHTS

Indicators, RUR mln

2010

2009

Change, %

Revenues

43 105

40 412

7%

OIBDA2

18 634

16 245

15%

% of revenues

43,2%

40,2%

3,0 p.p.

Operating profit

10 741

7 993

34%

% of revenues

24,9%

19,8%

5,1 p.p.

Net profit

7 237

3 654

98%

% of revenues

16,8%

9,0%

7,8 p.p.

Net Debt3

16 190

21 104

(23%)

Net Debt/OIBDA

0,9

1,3

Capital investment

6 343

4 592

38%

% of revenues

14,7%

11,4%

3,3 p.p.

1 IFRS. Cossolidated financial statement consist of assets, liabilities and result of Uralsvyazinform activity and its subsidiaries.

2 OIBDA is made up of operating profit+Depreciation and amortization.

3 As of December, 31, 2010 Net Debt is made up of Non-current liabilities+Current liabilities-Cash and cash equivalents-promissory notes and bonds.

REVENUES

Revenues

2010

2009

Change, %

Local telephone services

11 016

10 442

5%

Intrazone telephone services

4 214

4 556

(8%)

Telegraph, data transfer and telematics services (Internet)

7 490

6 516

15%

Cellular services

14 256

12 668

13%

Interconnection and traffic transmission services

4 417

4 518

(2%)

Assistance and agents services

40

51

(22%)

Mobile and wireline radio and television

559

542

3%

Other telecommunications services

28

9

211%

Other revenues (non-core activities)

1 085

1 110

(2%)

Total

43 105

40 412

7%

Broadband services subscribers’ base increased by 18% and totaled 869.3 thousand.

OPERATING EXPENSES EXCEPT DEPRECIATION AND AMORTIZATION

Operating expenses, RUR mln

2010

2009

Change, %

Wages, salaries, other benefits and payroll taxes

9 030

8 287

9%

Interconnection charges

4 830

5 671

(15%)

Materials, repairs and maintenance utilities

3 043

3 333

(9%)

Other operating expenses

8 930

8 593

4%

Total

25 833

25 884

(0,2%)