Gars Telecom consolidated revenue in the first half of the year was RUR189’563’964, up 62% vs 116’694’001 rubles posted in same period of last year.

According to the first half of the year results, the total area where Gars Telecom renders services is at the point of 1’277’500 squire meters in 72 business centers of Moscow and Saint-Petersburg. For the first six months of the current year Gars Telecom has updated product range with the original solutions which are oriented on the corporate market, — wireless video-monitoring service Dozor , Videophone service and also innovation wireless broadband mobile secured access service “3G Office”.

Revenue dynamics associates in the Company with the “Maximum overdrive strategy” that was accepted in the beginning of the year. “Within the new strategy Gars Telecom plans develop actively at the own segments aiming to occupy not less than 20 per cent in the capital business centers telecommunication market, to enter cities with mln population and to increase essentially company capitalization, — tells Pavel Gorenkov, Gars Telecom CEO. — Our work efficiency is proved by the dynamics rates increasing for the 1H”.

Smart capacious services have become for Gars Telecom the first item by the revenue for the second year. Among them are outsourcing of the telecommunications services, telecom-consulting and audit, and also integration projects. The share of revenue by this item has shown stable growth: 23,6% — 1H 2004 (18’208’730 rubles), 28,4% — 1H 2005 (26’551’115 rubles), 32,3% — 1H 2006, (37’692’162 rubles). By the 1H 2007 year results this item is equal 39% company revenue or 73’929’946 rubles.

Gars Telecom gain from data transmission and internet access services has increased twofold in comparison with the last year rates. So, in the first half of the 2007 this gain is 32,2% of the consolidated revenue or
61’039’596 rubles against 15,9% 18’554’346 rubles in 2006.

Revenue share of the traditional and mobile telephony > services rendering decreased in comparison with the same period of the last year up to 19,3% that is 28,8% (27% by the 2006 year results) or 54’594’422 rubles. “New regulations for the long-distance communications rendering continue influence on revenue distribution, — notes Dmitry Aleksandrov, Gars Telecom Commercial Director. — Along with the last year results, about 20-23% of the telephony eventual revenue are in long-distance telecom-carriers”.

By the 1H results company again proved status of the one out of the ternary professional telecom-companies for the commercial real estate market. Gars Telecom consultants are traditionally among Estimating Committees of the core Russian commercial estates awards (follows alphabetically) — Building
Awards.

“Gars Telecom Company successfully has begun regional expansion. In April Saint-Petersburg representative office was opened, and it is planned to open office in Rostov-on-Don in autumn, reports Ruslan Aliev, Gars Telecom Development Director. — Second half of the year is traditionally more efficient for the company in terms of revenue and projects for the future as well. that is why we forecast 14 MUSD revenue that will allow reaching physiologically important point of the 30 MUSD capitalization”, the company said.