2006 year confirmed Gars Telecom status as efficient, high-growing telecommunication carrier with 20+ MUSD capitalizations. Work strategy with corporate sector and in the telecommunication segment for real estate was successful that was proved by financial statements.

Gars Telecom annual revenue in 2006 is 249’941 thousand rubles that is 35 per cent higher than for the same period in last year. In the last year company expanded infrastructure and built up client base. Yearly among new names in carrier client portfolio are famous international and local companies and brands such as Bovis Lend Lease, Dufry, EnglishFirst, Epson, FrontRange Solutions Inc., Ideal Standard, Miele, JVC, Omron, Sodexho, Absolut Bank, Azbuka PH, Anixter, Armadillo, BINBANK, Bystrov, Gzhel, Rosbank, Sbercard and etc.

“New rules for long-distance telecommunication services rendering influenced greatly on revenue distribution, — explained Pavel Gorenkov, ‘Gars Telecom’ CEO. — According to our analysts, about 20 per cent of possible telephony services revenue moved to long-distance telecommunication carriers”. Communication access (fixed and mobile telephony) that traditionally occupied the biggest share in revenue structure according to the year results dropped to 27 per cent in the total revenue amount from 46.4 per cent in 2005 and from 52.8 per cent in 2004.

On data transmission services and on Internet access company yielded 32.3 per cent of 80’731 thousand rubles.

The first and more fast-growing part of Gars Telecom gains in 2006 became intellectual services. 40.7 per cent or 101’726 thousand rubles company earns in the last year on telecom-outsourcing (outsourcing of communication services, telecom-infrastructures and etc.), telecom-consulting, audit and integration projects realization as well. Development dynamics in consulting department allowed Gars Telecom saving position in “Top 10 of major high-growing IT-consultants” according to RBC rating and occupying 6th position by “Revenue-per-Consultant” measure among the leading IT-consultants of Russia (RBC, CNews Analytics). According to Yula Podnos Gars Telecom Consulting Department Partner, “taking into consideration rapid growing quantity of orders, we can positively confirm that new segment was held in telecom-consulting for developers business and telecom-carriers founded by Gars Telecom alone”.

Within the analyzing period company consolidated professional corporate communications market participant status. Thus in the 2006 first half Gars Telecom was announced as “Company of the 2005 year”, “The best Moscow Employer”, Gars Telecom jointed project became a prizewinner of “Commercial Real Estate Awards” in the commercial real estates sphere. Lastly, in the rating of “The 50 most strategic telecommunication companies” Gars Telecom proved 4th position in category of “Fixed Communication” and rose up to 8th position in the united rating of the most strategic telecom-companies in Russian market.

“Upon the 2006 year results company services 973 thousand squire meters, — tells Pavel Gorenkov, Gars Telecom CEO. — We are close to the psychologically important point of one million squire meters and finally consolidated in ‘The Big Three’ of telecommunication real estate market”.