For the last year Gars Telecom increased by one third that allowed the Company joining the list of the largest members of the Russian telecommunications market. In the revenues structure are funds gotten either from the traditional telecom-services rendering or the consulting and system integration. In 2005 the Company plans to lay stress on the further development of the smart services for the large corporate clients and commercial real estate sector as well.

In 2004 the Gars Telecom consolidated revenues was 5’168’163 USD (148’894’791 rub.) against 3’766’229 USD (115’510’237 rub.) the year earlier providing the 37,2% increase and the 20 place in “The Largest Russian telecommunications companies” rating by Cnews Analitycs (CNA) powered by Ministry of Russian Federation for information technologies and telecommunications.

The largest part of the revenues — 52,8% or 2’728’790 USD, the Company got from the traditional, mobile and IP telephony services rendering. At the same time comparing with the previous periods these services share in consolidated revenues decreased — the year earlier this index was 62,1%. “The structure of the revenues reflects the clients’ demands evolution, — tells Sergey Rykov, Gars Telecom President. — Early the number of organizations, in which IT and telecom occupies more than 10% of costs, doubles. Nowadays the majority of the companies which moving forward to become largest ones, or IPO, formalizes or optimizes the business process owing to the information technologies. That is why in the demand structure the share of the system integration, IT and telecom consulting is rising”.

Up to the one third of the 2004 year consolidated revenues Gars Telecom obtained from the smart services rendering — audit of the IT-infrastructure, telecom-consulting, system integration and data transmission networks constructing. The highest rise either in this group or in the total revenues structure concerned audit and consulting services. In 2004 year this sphere of activity brought the Company 589’170 USD and its share increased from 4,6% up to the 11,4% and in money equivalent it was 240% rise. “The Company policy is aimed to create the team of the high class professionals, — tells Pavel Novikov, Gars Telecom Development Director. — The majority of the team is the professionals with the working experience in the large international telecommunication companies. And it is the main asset of the Company which allowed us in 2004 moving forward in the VAD services development”. So, Gars Telecom takes 9th position by “Revenue-per-Consultant” measure among the leading IT-consultants of Russia (CNA) with the 1559,5 thousand rub. per consultant. And by the consolidated revenues from consulting in IT sphere the Company takes 29th position.

Up to 521’984 USD (10,1% from total revenues) in 2004 increased revenues from corporate networks organization. The system integration services brought the Company 118’867 USD. At the same time, comparing with the 2003 year profit from the equipment delivery within the bounds of the integration projects decreased from 12,3% to 8,2% and was 423’789 USD. Saving the equipment delivery rate the decrease of the per cent share determined by the margin decrease that was typically for the IT and telecom market. 15,2% of revenues or 785’561 USD were brought Gars Telecom by internet access services. In the revenues structure this group share comparing with the indexes of 2003 year increased on 3,7 points — from 11,5%.

“In the conditions when the more clients are interested in connections channels but not in telephone station the meaning of the intellectual part of the telecom-market will grow. At the same time such solutions can be rendered by a few companies, — concerns Pavel |Gorenkov, Gars Telecom CEO, — Large companies are busy to sell standard services range that allow returning investments in the own corporate infrastructure and middle companies do not have necessary professional level to realize effective solutions for the large and demanding clients. That is why we observe that Gars Telecom has real perspectives for the further growth in the smart telecom-solutions market”.

Such an approach allowed the Company becoming for the last two years the one out of the three core telecom companies for the commercial real estate. “Nowadays building companies and developers are interested in that the objects should fit the international classified system, — tells Ruslan Aliev, Gars Telecom Sales Director. — This is essentially rises the demands to the development quality and infrastructure and to the quality of the further development of the telecom-system management as well. At the same time this segment covered by the traditional operators which rarely understand the specifics of the work on the real estate market. Today Gars Telecom is the only company which realizes complex projects for the commercial real estate objects that fit the international qualification BLEC (Building Local Exchange Carrier)”.

“As any ambitious company Gars Telecom plans in 2005 to expand the number of clients and increase the revenues. This will be provided by the enforcing of the infrastructure and methods development that are necessary for the nontrivial projects development and realization, — tells Pavel Gorenkov, — Moreover, we concern that the current year — is the year of the specialized telecommunication solutions. In particular, Gars Telecom enters the market with the solutions for the hotel hospitality, warehouses and logistic companies”.

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Gars Telecom profile: telecommunication management, integration projects realization and telecommunication services rendering. Company is oriented to cooperate with big-sized corporate clients and telecom-carriers. Along with tradition telecom-services company renders services in telecom-consulting, outsourcing of the communication services and telecom-infrastructure, and also telecom-budget management.

Among key corporate customers are TNK-BP, RussNeft, Alliance Oil Company, Ehrmann, GEA, MosFilm, TeliaSonera, Interros, Eksmo. Gars Telecom works with business-centers: Amber Plaza, Alfa Arbat Center, Thchaika Plaza, 1st kilometer, Union and “Molodezhny” hotel complex.

According the CNews Analytics Gars Telecom is on the 20th position among the largest Russian telecom companies by the “Revenue-per-Consultant” among the leading Russian companies that render IT outsourcing services.