16.05.2006

ZGG Group continues on course for success

The Annual Financial Statements of the ZGG group for 2005 prepared in accordance with IFRS (International Financial Reporting Standards) shows a result that clearly exceeds last year's level. The Group consolidated sales totalled 287.4 TWh. ZGG Group consolidated turnover reached ? 3.292 billion in the reporting year. Compared to the previous year, this corresponds to a 22.5% sales increase mainly caused by an upturn in prices. The Group's net income as of 31.12.05 totals 182.4 million Euro.

Managing Director Hans-Joachim Gornig has been highly satisfied with the results. On today's balance sheet press conference he announced extensive investments and attendance to all value added activities from source to final consumer: 'Strengthened, the company is entering a new stage of development. We suppose that the use of natural gas will continue to grow world-wide, bolstered by new applications and means of transportation. This provides natural gas companies with a solid basis for successful market activities. We will proceed with further consolidating our position in Europe and Central Asia and investment in the necessary infrastructure. We seek to gain further market shares through participating interests. In addition we shall provide substantial funds for transportation and storage technologies.'

Gornig sees the growing importance of natural gas to be undisputed also for Germany and points out: 'Our Group will go on adding to increase reliable natural gas supplies from Russia also in future which have been carried out for almost 35 years now and further develop proven mutually advantageous energy partnerships between Germany and Russia.'

In Germany ZGG has primarily invested more than 1 billion EUR in WINGAS since 1990. A 30 million EUR dividend will be distributed to sole shareholder OOO 'Gazexport' for the fiscal year 2005 (25 million EUR for fiscal year 2004).

ZGG is a Europe-wide gas industry venture of the largest natural gas producer OAO Gazprom. The company is represented in more than 20 countries on the international gas market, so far. ZGG is a wholly-owned subsidiary of OOO 'Gazexport', Moscow, hence it forms part of the GAZPROM group.

Established in 1990, ZGG holds shares in WINGAS, WIEH, WIEE and VNG on behalf of GAZPROM / Gazexport. The ZGG Group itself has been actively operating in gas business through its wholly-owned subsidiaries ZMB GmbH, Berlin, Gazprom Marketing & Trading Ltd., Kingston, and ZMB (Schweiz) AG, Zurich.

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