Vedomosti (Moscow) - October 5, 2005

Renaissance Capital has lowered its recommendations on RBC shares from "buy" to "hold", having revised its target price to $5.6 from $5. According to analysts with the brokerage, RBC shares are traded higher in comparison to such companies in developed countries as for the performance of the stock in 2005. As for 2006, they are traded with a certain discount. RBC has disclosed its interim results for the first half of 2005 under IAS, Aton Capital said. Revenue advanced 35 percent from a corresponding period of 2004 to $45.5m. The TV project enjoyed a 57 percent increase in revenue. EBITDA was 29 percent higher at USD13m, and the EBITDA margin edged lower to 29 percent. Experts at Aton Capital say that in the second quarter of this year RBC showed growth in all business segments after a seasonal slump in the first quarter. RBC has reiterated its forecast for 2005, namely the revenue of USD98m and EBITDA of USD29m. Industry observers with Aton Capital consider these estimates to be realistic, taking into account seasonal increase in the growth rate in the second half of a year. RBC has also announced its extraordinary shareholder meeting on October 14, where shareholders are to consider an increase in the amount of registered outstanding shares to 34m from the current 14m. According to Aton Capital's estimates, the company is going to raise funds to finance new acquisitions. Aton has reiterated its "buy" recommendations with a target price of $5.8 for the end of 2006. Yesterday, RBC shares traded at $5.76-$5.95 on the RTS exchange.