/IRBIS, Galina Tsalyuk, June 17, 05/ - Ust-Kamenogorsk titanium- magnesium combine JSC (UKTMC JSC, Ust-Kamenogorsk, hereinafter - company), whose shares are traded in official securities list of Kazakhstan Stock Exchange (KASE) under "A" category, has provided KASE with auditor's report made by Deloitte & Touche company (Almaty) on the company's financial statement for 2004 prepared in compliance with international accounting standards (IAS).

Result of the company's financial and economic activity as on December 31, 2004 according to audit statement is as follows (th. KZT, unless otherwise specified):

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                                               as of       as of
Indicator                                  Dec 31, 03  Dec 31, 04
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Authorized capital (paid)                      24,021     158,205
Shareholders' equity                        8,747,302   9,338,604
Total assets                                9,844,528  10,268,027
Net working capital                         2,836,143   3,611,670
Accounts receivable                           781,424   1,398,269
Total liabilities                           1,097,226     929,423
Accounts payable                              936,751     588,832
Borrowed loans                                160,475     284,971
Volume of sales                             8,692,990  12,025,379
Prime cost of sales                         7,836,498  10,236,948
Net income for the year                        82,559     488,280
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Calculated by audit statement's data:
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Return on sale (ROS), %                          9.85       14.87
Return on equity (ROE), %                        0.94        5.23
Return on assets (ROA), %                        0.84        4.76
Balance cost of 1 share, KZT                 8,106.11    4,554.77
Net earning per 1 common share (EPS), KZT       83.31      248.97
Price coefficient to earnings (P/E)             49.20       14.06
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Audit of the bank's financial statement for the year 2004 was made by Deloitte & Touche in compliance with international auditing standards. Company's financial statement, which is made according to Kazakhstan standards of accounting, was corrected with purpose to bring it into compliance with ISA.

As on December 31, 2004 company had 49% stake of participation in Satpayevsk Titanium Mines Ltd JV (as on December 31, 2003 - 50% stake).

Paid company's authorized capital as on above dates are reflected by auditors with corrections for inflation in the amount KZT2,439 th.

In the opinion of Deloitte & Touche financial statement in all essential aspects correctly reflects company's financial economic activity and cash flow for the year, ended on the above date, according to ISFR.

Primary types of company's activity - production and sale of nonferrous metals (high quality titanium sponge, marketable magnesium).

[2005-06-17]