/KASE, Sep.14, 99, Galina Chudinova, Nadir Zhakupov/ - According to the listing requirements KAZAKHTELECOM provided Kazakhstan Stock Exchange (KASE) with financial reports for July 01, 99: balance sheet, income statement, and statement of cash flows.

Following are the results of the emitter for the first half of 1999. All figures are given in tenge and as against to the corresponding period of 1998.

First half of First half of Increase / Indicator 1998, '000 1999, '000 decrease., %

--------------------   -------------   -------------  ------------
Authorized capital 
(announced)               12,136,529      12,136,529             0
Authorized capital 
(paid)                    36,603,823      29,600,112         -19.1
Total assets              55,578,075      55,528,513          -0.1
Net working capital        5,565,297         451,865         -91.9
Debt liability (net)      10,618,884       7,926,669         -25.4
Credit liability          18,974,252      25,928,401         +36.7
Sales                     11,491,322      13,734,296         +19.5
Cost of goods sold 
(services offered)         7,026,502       8,399,445         +19.5
Net profit (loss)          2,273,057	  -2,458,181        -208.1
--------------------   -------------   -------------  ------------

There were no changes in the company's announced authorized capital.

Decrease in the authorized paid capital by 7,003.71 million (19.1%) was stipulated by: - increase in sum of losses of current and previous years by 5,431.09 million;
- reduction in addition unpaid capital by 1,572.62 million (revaluation of assets).

As a result the share's balance sheet value decreased by 577.08 tenge to 2,438.93 tenge per one share.

The company's assets has decreased by 49.56 million (0.1%). It was stipulated by the reduction of the current assets by 3,665.01million (61.2%), including: - reduction of the accounts receivable by 2,692.21 million;
- reduction of short-term investments by 1,927.12 million;
- increase in volume of inventory stocks by 893.71 million;
- increase in cash by 54.68 million;
- increase in expenses of future periods by 5.93 million.

Increase of the long-term assets of KAZAKHTELECOM has made 3,615.45 million (8.9%), including: - increase in fixed assets by 2,465.56 million;
- increase in long-term investments by 1,477.47 million;
- increase in intangible assets by 87.45 million;
- increase in expenses of future periods by 1.70 million;
- decrease in incomplete construction by 416.77 million.

Long-term liabilities has increased by 5,505.73, including: - long-term credits from banks - 4,727.03 million;
- long-term credits from another sources - 778.70 million.

Current liabilities has increased by 1,448.42 million, including: - increase of current part of the long-term credits by 2,315.78 million;
- increase of short-term accounts payable by 1,180.68 million;
- increase of incomes of the future periods by 13.11 million;
- decreased of short-term credits by 2,061.15 million.

In result total liabilities has increased by 6,952.15 (36.7%).

Volume of the products sold has increased by 2 242,97 million (19.5%), cost - by 1,372.94 (19.5%).

Income from operating activity has made 2,005.18 million. Loss from nonoperating activity has amounted to 4,463.13 million. In a result amount of loss has made 2,439.51 million in contrast with 2,273.06 million of the corresponding period of 1998 income.

Total expenses have increased by 874.37 million (35.6%), which was caused by: - increase of credit service - by 531.16 millions (111.0 %), - increase of general-and-administrative expenses - by 347.55 million (17.7%);
- decrease of marketing expenses by 4.34 millions (31.8 %).