1. Balance sheet on 01.01.2006

2. Assets (mln. bel. rubles) Long-term assets _____________________ 1 885 430 Intangibles assets ___________________ 3 439 current assets: - inventories and expenditures________________ 118 045 - cash _______________________ 21 726 - receivables and other __________________ 161 432 Total: assets ___________________________ 2 190 072

3. Liabilities (mln. bel. rubles) Internal funds ____________ 1 933 746 Long-term obligations ___ 10 481 Payables and other liabilities________________ 245 845 Total: liabilities_________________________ 2 190 072

4. Financial statement from January 1, 2005 to January 1, 2006. (mln. bel. rubles) Gross income on sale ___________ 851 128 Production and sale costs___________________ 721 971 Profit on sales ___________ 129 157 Net profit on non-sale and other operations 7 342 Balance profit ______________________ 121 815

5. Long-term assets Long-term assets include: depreciated cost of fixed capital and long leased fixed assets, long-term investments, equipment to be installed, capital construction in progress. (mln. bel. rubles) Fixed capital (depreciated cost) __ 1 828 766 Long leased fixed asset (depreciated cost)___________ 0 Long-term investments _______ 6 609 Equipment to be installed _________________ 6 398 Incomplete capital constructions _____ 50 266 Total: ________________________________ 1 892 039

6. Intangibles Intangibles represent residual cost of tangible assets (mln. bel. rubles) 3 439

7. Internal funds Internal funds include: registered stock, special-purpose funds, purpose-oriented credits and returns, leases. (mln. bel. rubles) Registered stock ________________________ 17 988 Special-purpose funds ___________ 1 909 865 Purpose-oriented credits and returns _____ 3 342 Leases __________________ 0 Reserve sources of internal funds ___ 2 551 Losses born in previous years ___________ 0 Accounting year losses____________________ 0 Total: __________________________________ 1 933 746

8. Long-term financial obligations Long term obligations are long-term bank credits, taken by the branches for implementation of capital investment programs. (mln. bel. rubles) 10 481

9. Payables and other liabilities Payables and other liabilities include: short-term credits and loans, accounts payable, future income and и other short-term liabilities. (mln. bel. rubles) Short-term credits and loans ___________ 8 350 Accounts payable ___________________ 145 193 Future income _________________ 97 659 Other short-term liabilities _____________ 0 Total: __________________________________ 251 202

10. Production and sale costs Cost of production and sale of telecommunications services include VAT and deductions to various funds.

11. Operating receipts / expenses Operating receipts associated with any delivered/received services are recognized in the same period when they have been paid. Expenses are recognized in the period they have been actually incurred regardless of the time of payments (advance or next).

12. Fixed assets Initial value of fixed assets includes total expenditures for settlements and allowance for contractors, material and labor cost, and interest paid up to the date of putting the perspective assets into operation. Retired fixed assets (depreciation or salvaging) are removed from the balance with account of depreciation. Profit or loss resulting from the fixed assets retirement is recognized in the profit-loss for the period when depreciation or salvaging occurred.

13. Depreciation Subject to normative life, fixed assets depreciation is calculated by a straight-line method starting from the first day of month following the one when the respective asset has been put into operation.

14. Accounts receivable Accounts receivable are estimated in the balance sheet on the basis of the amount due.

15. Cost of borrowings Costs of attracting loans for major construction or procurement of fixed assets are capitalized as part of the initial cost of the respective fixed assets and are charged to expenditures throughout the depreciable life of the asset.

16. Foreign exchange operations Foreign currency and assets acquired for foreign currency, receivables and payables are reported at the National Bank exchange rate in effect on the business transaction date of regular accounting.

17. Taxation Taxable profit is calculated from the balance profit, which is made up of the revenue from all telecommunications services, other values (including fixed assets, inventories, intangibles, securities) and revenues from nontrading transactions, less expenses on the said transactions. The method applied for calculation of revenue from services is a component part of the Beltelecom accounting policy. In 2004, Beltelecom recognized delivered services as the associated service bills had been paid.

18. Allocation to the budget for social needs and extra –budgetary funds Beltelecom makes allocations to the fund of social protection of population and employment fund from its wages fund. The allocations are charged against the period for which wages have been calculated. All deductions are made in accordance with the standards in effect in the reporting period.

19. Allocations to the budget for social needs and extra-budgetary funds Beltelecom makes contributions to the fund for support of agricultural food producers, agricultural science, highway fund; purpose-oriented local budget funds for stabilization of agricultural and food producers economics; to housing investment funds and living-space unkeeping and repair funds, from products paid. Beltelecom makes deductions to the innovation fund from the previous period products by charging them against the cost and to the stabilization fund from proceeds from accumulation of profit tax.

20. http://www.beltelecom.by Thank you for your attention