Vedomosti, (Moscow) - August 22, 2005

Brunswick UBS has upgraded its target price for RBC shares to $6.3 from $5.1, reiterating its "buy-2" recommendations. RBC has reported its financial and operational results under IAS for 2004. Analysts with Brunswick UBS say that RBC TV's revenue in the Internet advertising segment and EBITDA margin have remained high. Core business has also shown some positive trends, since Internet services and TV advertising are key factors spurring RBC's growth, analysts with Brunswick UBS say. Taking into account these trends, Brunswick has revised RBC's earning forecasts upwards for 2005-20006. RBC seems to be an attractive company from a macroeconomic point of view, experts point out.

Renaissance Capital analysts name several key factors of RBC's growth. RBC TV launched in September 2003 has been successfully developing.

Taking into account a lack of advertising platforms on TV and higher advertising costs, RBC TV is a fast growing business segment, analysts with Renaissance Capital believe. According to their estimates, mergers and acquisitions could boost RBC's revenue in 2005 by USD50m (up 30 percent from earlier forecasts) and net in income - by USD3m-USD6m. In April, RBC launched their first-tier ADR program (34 percent of the company's shares are freely traded now). This move should have a positive impact for the liquidity of securities. Renaissance Capital has assigned "buy" recommendations on the stock with the target price of USD5. On Friday, RBC shares traded at $5.1-$5.3 on the RTS exchange.