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Rambler Media

October 2006

Capitalising on the fastest growing

media market and online

community in Europe

2

Rambler Media at a glance

• Rambler Media was a pioneer in identifying the internet opportunity in Russia, and commenced operations in 1996

• 10 years on, its main search engine and media portal, Rambler.ru has become the largest multi-service internet resource for the Russian speaking community worldwide and provides innovative solutions to advertisers

– 65% of internet users in Russia regularly visit rambler.ru* – Over 23 million monthly users of Rambler Media web properties*– A one stop shop offering over 50 different information, communication, e-commerce and entertainment services

Source: *Comcon – First Quarter 2006 ; Company – July 2006 2

In 2004, Rambler Media launched Rambler Mobile to provide mobile value added services and capitalise on growing widespread mobile usage in Russia and the CIS

− Revenue sharing agreement with major GSM operators, reaching 95% of mobile users in Russia − Services include Ringtones, interactive SMS, SMS Chat/Dating/Voting, News

Internet

TV Mobile

In 2003, Rambler Media launched Rambler TV, adding a new media channel to its internet offering and tapping into the $2.3bn TV advertising market in Russia

− A documentary and entertainment TV channel reaching 40 million viewers − Attracting a premium audience with high disposable income

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…in the early phase of its growth

Russian Advertising MarketFrom $1.3bn to $7.1bn* in 5 years

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2001 2002 2003 2004 2005F 2006F

+40%

CAGR

(US$m)

Note: Figures for 2001 and 2002 are based on above-the-line advertising only. Figures for 2003 onwards include above-the-line and below-the-line advertising

Source: *Russian Association of Advertising Agencies

• Russian Advertising market is one of the World’s largest and fast growing – over $6bn in 2005

• Internet has emerged as a new efficient and targeted media channel, set to outpace the overall market growth ( +65%

CAGR between 2002 and 2005)

• Mobile usage is also accelerating with Value Added Services revenues growing 115% CAGR since 2001 at $1.5bn in

2005

• Television continues to grow and remains the principal advertising channel, generating $2.3bn in 2005

Russian Internet and Mobile penetration**18% internet and 69% mobile penetration in 2006

0

20,000

40,000

60,000

80,000

100,000

120,000

2001 2002 2003 2004 2005F 2006F

Internet Mobile(000s)

Sources: **Company / Ministry of Communications / Central Bank / J’son & Partners

Note: Mobile Value Added services include voice content, SMS, MMS and premium SMS content

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A leading brand & essential partner…

• Core business since creation in 1996

• A preferred web resource for Russian speaking audiences worldwide• Offering proprietary web search, e-mail, news, instant messaging, e-commerce

services:– www.rambler.ru : main internet portal and search engine– www.lenta.ru : online Russian newspaper– www.price.ru : price comparison– www.siting.ru : website creation / editing– www.mama.ru : parenting information– www.doktor.ru : health related advice– www.ferra.ru : computer equipment information

• Generating revenues primarily from banner advertising, sponsored key word

searches and e-commerce

• Supported by a full-service wholly-owned advertising agency

20.9 million unique users of Rambler.ru every month

1.5 billion monthly page views…

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Internet

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…for users

• Established brands– Rambler.ru reaches 65% of internet users in Russia*– Lenta.ru attracts 2.6 million unique visitors per month**

• Proprietary search engine with Russian language tailored morphological module

• Advanced multi-service portal– Email, News, Radio– Search engine by word or category– E-commerce, instant messaging…

• B2B platform – Top 100 Rating and Classification– Real time monitoring of over 900,000 websites across 57 industries– Recording number of unique users and page views– ISO 9001:2000 Certified

Search

News

Services

Email

Top 100

Weather

Horoscopes

On line radio

5Source: *Comcon – First Quarter 2006Source: **Company – July 2006

Rambler-ICQ instant messaging

Internet

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Operating Highlights

• 100% period on period increase in total revenue to US$ 16 million (US$ 8 million)

• Internet revenue up 137% to US$ 12.3 million (US$ 5.2 million)

• TV sales up 129% to US$ 2.2 million (US$ 0.96 million)

• Group EBITDA* profitable for second consecutive half year

• Over 50% increase in number of internet unique monthly users of Rambler.ru to 21 million vs 25-30% of Internet penetration growth in Russia

• More than 1.6 million Rambler-ICQ instant messaging unique users per month in less than one year after lauch

• Acquisition of 51% of Price Express, a leading Russian price comparison internet company

• Exclusive partnership with Trader Media East Ltd to launch online classified ads in Russia with leading newspaper Iz Ruk V Ruki

• Acquisition of 51% of online Russian social network Damochka.ru and 51% of online banner technology company Bannerbank

First Half 2006 results highlights

*Earnings before interest, tax, depreciation and amortization6

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• 100% revenue growth period on period to US$16 million (US$ 8 million)

• 78% of total revenue came from internet

• Net profit of US$ 2.5 million (net loss of US$ 2.3 million)

• Strong balance sheet with $20 million cash at end of June 2006

First Half 2006 Revenue and EBITDA*

7

11.4

1.3 2.3 3.3

(1.4)(0.3)

-10

-5

0

5

10

15

20

Internet Mobile VAS TV

US$

m

Revenue EBITDA*

Financial Highlights Revenue composition

Revenue and EBITDA* growth

*Earnings before interest, tax, depreciation and amortization

Internet 78%

TV 14%

Mobile 8%

Moving into Profitability

-5,000

0

5,000

10,000

15,000

20,000

25,000

2002 2003 2004 2005 HY 2006

Revenue Growth EBITDA Growth

US$

m