Kazakhtelecom JSC (Kazakhstan) informs on results of financial and economical activities in first half of 2008

/KASE, July 29, 08/ - Kazakhtelecom JSC (Astana) shares of which are traded in the official list of Kazakhstan Stock Exchange (KASE) of category "A", provided KASE with the press release: Quotation start According to current data in the first half of 2008 out-coming paid traffic of international intercity telephone connection (IITC) grew 106.5 % in comparison with last year and made up 1,109,959 th. minutes. 88.6 % has constituted for internal traffic of the Republic of Kazakhstan, and 11.4 % - for international traffic. Internal republican traffic increased 6.7 %, and international traffic grew 5.3 % as compared with the last year. Generally, positive grow dynamics of the indicators is linked with Kazakhtelecom's actions on modernization and improvement of quality of rendered services, which caused enlargement of subscriber base and, consequently, IITC traffic growth. However, IITC traffic grew less than expected, which is tied to active traffic shift to mobile networks and IP-telephony. Out-coming paid traffic to subscribers of side operators, including traffic with subscribers of cell telecommunications operators, in the first half of 2008 increased by 12.1 % compared with last year and made 254,750 th. minutes. Digital automatic telephone stations and 31,597 number multi-service subscriber access, CDMA terminals with 469 port capacity, ADSL with total 14,496 port capacity were commissioned during the reporting period. NGN equipment was installed in Ust-Kamenogorsk. HGN equipment was commissioned for operational testing in Petropavlovsk. NGN equipment is being tested for launch in Ust-Kamenogorsk and Semipalatinsk. The equipment is being tested in Shymkent. Main Financials In the first half of 2008 consolidated income of Kazakhtelecom JSC, according to current data, made KZT75.4 bn., including from telecommunications services - KZT68.3 bn. Total income growth, compared with the same period of 2007, made 109.9 %. The growth is conditioned with improvement of quality of rendered services resulting from modernization, telecommunications network enlargement, widening of client base, number of Megaline subscribers. However income growth seems to be reducing due to growth of activity of rivals on the telecommunications market. Expenses of Kazakhtelecom JSC in the first half of 2008 made up KZT55 bn. or 114.3 % compared with last year corresponding period. The cost of production sold totaled to KZT40.4 bn. or 115.8 % compared with corresponding period last year, expenses for the period - KZT13.9 bn., or 108.6 % of the corresponding period last year. Growth of expenses by the first half of 2007 is conditioned by: increase of prices on materials and spare parts, tariffs for electricity, expenses for wages and salaries, expenses incurred by subsidiaries due to enlargement of production activities etc. Net profit of Kazakhtelecom JSC for the first half of 2008 totaled KZT17.6 bn. or 108.2 % compared with the first half of 2007. Projected expenditure of capital investments in the first half of 2008 totaled to KZT9.6 bn. (planned KZT9.7 bn.) that is 99 %. At that investments totaled KZT4.8 bn. on development and modernization projects, KZT2.5 bn. on production projects for maintenance of the current production capacities, and KZT1.6 bn. on development of mobile telecommunication network. Public Relations Service Kazakhtelecom JSC Quotation end [2008-07-29]