Kazakhtelecom (Kazakhstan) informs on results of operation in 2008

/KASE, October 22, 08/ - Kazakhtelecom (Astana), shares of which are traded in the official list of Kazakhstan Stock Exchange (KASE) of the first category, provided KASE with the press release: Quotation start President of Kazakhstan Nursultan Nazarbaev received Chairman of the Board of Kazakhtelecom Askar Zhumugaliev in Ak-Orda residence October 20, 2008. Zhumugaliev informed on main results of operation of the company in 9 months of 2008. According to operational data in 9 months of 2008 approximately 190,000 fixed telephone lines installations were produced, including - at city network - over 137,000 units, at rural - about 53,000. As a result a number of fixed connection lines in Kazakhtelecom network as on October 1, 2008 made up 3,221,000 units, including at city network - 2,463,000, at rural - 758,000. Comparing with the same period last year the indictor grew more than 10 % resulting in telephone density according to results of 9 months of 2008 20.7 fixed lines per 100 people. The indicator grew 7.8 % compared with that of the last year. According to estimations, the total of the Internet subscribers of Kazakhtelecom (with subsidiaries) made up for the reporting period more than 1,000,000 people, 70.8% more than in the same period 2007 with 541,000 wide band Internet subscribers making 173 % of growth. Totally as on October 1, 2008 Kazakhtelecom network was represented with 4,206 ATS, including at city network - 1,518, at rural network - 2,688. In this period 203 stations were installed with 37 at rural area. Digital stations totaled to 2,857 or 67.9 % of the total of ATS number. Main financial indicators: According to operative data in 9 months of 2008 consolidated income of Kazakhtelecom totaled to KZT103.787 bn. Income growth compared with the same period of 2007 made up 11.4 %. The growth is due to improvement of services rendered as a result of modernization, enlargement of telecommunications network, client base, and a number of Megaline subscribers. In addition income growth has been slowing down due to rivals' activity at telecommunications market. Kazakhtelecom expenses in 9 months of 2008 made up KZT87.702 bn. which is 15.6 % more than in the same period last year. Expenses grew due to higher market prices on materials and spare parts, energy and labor costs, and subsidiaries spending on broader production activity. Kazakhtelecom net profit in 9 months of 2008 according to operative data made up KZT26.906 bn. increasing 6.9 % compared with the last year corresponding period. Public Relations Service Kazakhtelecom Quotation end [2008-10-22]