In 2008 the business of the universal operator Gars Telecom grew almost on the third up to the half of a billion rubles. In the current macroeconomic situation the Company sees the new drivers for the further aggressive growth.

Total Gars Telecom revenues by the 2008 year results were 528178 thousand rubles with VAT is not included (+28,2 % to the same period of the last year).

The companies’ group revenue structure has suffered changes: the smart capacity services block that has used to be the locomotive of the Gars Telecom development for the last four years (telecom-services outsourcing, telecom-consulting, communications audition, and the integration projects as well) has given the place to the revenues from data transmission services and internet access. The revenues from the fixed telephony services rendering also have grown.

Data transmission services and internet access have brought the Company 207’046 thousand rubles or 39,2% of the total revenue (+27,3%). Telephony — 139’967 thousand rubles, or 26,5% of the total revenue (+38%). Smart capacity services have brought 181’165 thousand rubles (+14,4%). Despite that fact that the share of the last ones in the revenue structure decreased from 38,3% in 2007 year up to 35,5% in 2008 year, Gars Telecom for the second year has been saving the status of the number one on the telecom-outsourcing market (by the National Awards in the sphere of outsourcing the “Atlantes of the Business”).

“Gars Telecom as the Company that works only with the corporate clients, in the autumn of 2008 year, found itself in a state of ‘zero point’ and had firsthand knowledge the business activity decreasing. It was amusingly to read the official petitions of the business representatives about the ‘unessential’ staff reduction. — tells Pavel Gorenkov, Gars Telecom CEO. — By the changes in the internet-traffic consumption it was obvious that companies rightsized not less that 20% of the staff while the financial institutes including banks rightsized up to 80%. For the last three months of the year the traffic stream reduction achieved 30%. Gars Telecom in the recent economical situation lost 6,8-7,1% of the total revenues”.

At the same time during the 2008 Gars Telecom got an opportunity to reserve for the several years ahead. As by the 2007 year results the Company served 1505 thousand squire meters of the commercial real estate, so by the 1H of the 2008 year the bank of the projects grew more than 1 million squire meters and more than 3000 thousand squire meters are in development. According to the words of Evgeniy Oleynik, Gars Telecom Business Development Officer, despite the dramatically decreasing dynamics of the development projects running in Moscow and Saint-Petersburg, only 452 thousand squire meters with Gars Telecom participation delayed or frozen for the undetermined period. The projects are on the different stages of constructing that allow us being sure that up to the end of 2009 Gars Telecom should render services for the half of a million squire meters of the commercial real estate.

By the words of Pavel Gorenkov, “new times” run the new growth drivers which for the further two years will have been saving the Gars Telecom development dynamics. First of all, macroeconomic situation made unprofitable the business of the small telecom-operators that used to work in the segment of the low prices and the services that did not fit the level of the building. This allowed in the end of 2008 beginning the negotiations with more than thirty office centers.

Secondly, the majority of the middle and large companies used to be the clients of one or another operator, othervice today we observe that thinking about the costs reducing the same companies are ready to change the current telecom-operator. It means that the professional and aggressive operators have got a chance. Gars Telecom as well.