MOCC Moscow Cablecom (MM)

Nine Month Revenues Increase 115.4% NEW YORK, Nov. 28 /PRNewswire-FirstCall/ -- Moscow CableCom Corp. (NASDAQ:MOCC) today announced its results of operations for the three and nine months ended September 30, 2006. For the three months ended September 30, 2006, the Company recorded total revenues of $5,845,000, which represents an increase of 142.4% from the revenues of $2,411,000 reported for the three months ended September 30, 2005. For the three months ended September 30, 2006, the Company incurred a net loss applicable to common shares of $6,239,000, or $0.54 per share, basic and diluted, as compared to a restated net loss applicable to common shares of $3,852,000, or $0.44 per share, basic and diluted, for the three months ended September 30, 2005. The current quarter's loss per share was based on 11,478,000 weighted average shares outstanding for the period; while the restated loss per share for the three month period ended September 30, 2005 was based on 8,850,000 weighted average shares outstanding. Neither calculation includes the 4,500,000 outstanding shares of Series B Convertible Preferred Stock that are convertible into the Company's Common Stock on a share-for-share basis, which if included, would have reduced the loss per share to $0.39 and $0.29 per share, for the three month periods ended September 30, 2006 and 2005, respectively. For the nine months ended September 30, 2006, the Company recorded total revenues of $15,170,000, which represents an increase of 115.4% from the $7,043,000 of revenues recorded for the nine months ended September 30, 2005. For the nine months ended September 30, 2006, the Company incurred a net loss applicable to common shares of $13,086,000, or $1.29 per share, basic and diluted, as compared to a restated net loss applicable to common shares of $18,186,000, or $2.06 per share, basic and diluted, for the nine months ended September 30, 2005. These prior year results include the recognition of a non-cash beneficial conversion feature charge of $10,781,000 relating to the 4,500,000 shares of Series B Convertible Preferred Stock issued in January 2005, which contributed $1.22 per share to the reported per share loss. The current year's nine month loss per share was based on 10,173,000 weighted average shares outstanding for the period, while the restated loss per share for the nine months ended September 30, 2005 was based on 8,832,000 weighted average shares outstanding, Neither calculation includes the 4,500,000 outstanding shares of Series B Convertible Preferred Stock that are convertible into the Company's Common Stock on a share-for-share basis, which if included, would have reduced the loss per share to $0.89 and $1.39 per share, for the nine month periods ended September 30, 2006 and 2005, respectively. Moscow CableCom's quarterly and nine month progress is the direct result of accelerated expansion of the Company's hybrid fiber coaxial network in Moscow, Russia, and of aggressive sales and marketing efforts, which have resulted in increased subscriber levels, particularly for pay television and Internet access services. The following table presents network and subscriber base growth through September 30, 2006: September December September Year-to- One- 30, 31, 30, date year 2006 2005 2005 change change Homes Passed 681,594 325,954 255,622 109.1% 166.6% Active Subscribers Terrestrial television 137,921 85,994 77,090 60.4% 78.9% Cable television 47,052 15,618 9,466 201.3% 397.1% Internet 74,652 34,600 24,985 115.8% 198.8% Penetration levels Terrestrial television 20.2% 26.4% 30.2% Cable television 6.9% 4.8% 3.7% Internet 11.0% 10.6% 9.8% Mikhail Smirnov, the Company's Chief Executive Officer stated, "We expanded our hybrid-fiber coaxial network by 28.3% during the third quarter - more than 150,000 homes. We also increased the number of our active cable television and Internet access services subscribers by 54.5% and 32.7%, respectively, despite the seasonally slow summer sales period. We remain optimistic that demand for our services will continue to grow. We've achieved market penetration levels of 9.1% and 21.7% for our cable television and Internet access services, respectively, in selected areas where we have had a presence for an extended period of time. We expect to increase our market penetration in existing areas, to which we are presently marketing our services, as well as in areas of Moscow to be accessed in the coming months." The Company also announced that on November 21, 2006, it received a Nasdaq Staff Determination letter indicating that, as a result of the delay in filing the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2006, the Company is not in compliance with the qualification requirements for continued listing as set forth in Marketplace Rule 4310(c)(14), and that its common stock is, therefore, subject to potential delisting from The Nasdaq Global Market. The Company believes that as a result of the filing of its Form 10-Q today, it has regained compliance with Nasdaq's listing requirements and expects to receive confirmation of such from Nasdaq. About Moscow CableCom Moscow CableCom Corp. (NASDAQ:MOCC) is the US-based parent of a Moscow, Russia-based company that provides access to cable television and Internet services under the brand name "AKADO". AKADO is in the process of expanding its hybrid fiber-coaxial network in Moscow to provide residential and business customers with comprehensive broadband services in digital cable TV and radio, and high-speed data transmission and Internet access. The Company has licenses to provide its services to 1.5 million homes and businesses in Moscow, through its proprietary agreements for use of the Moscow Fiber Optic Network (MFON), the largest high-speed transportation network in Moscow. For more information on Moscow CableCom Corp. and AKADO, visit: http://www.moscowcablecom.com/ and http://www.akado.ru/ Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release may contain "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may contain words such as "expects," "anticipates," "plans," believes," "projects" and words of similar meaning. These statements relate to our future business and financial performance, including AKADO's development, its ability to attract new subscribers, to continue to expand its network, to achieve positive cash flow and our ability to raise funds for AKADO's development. These statements are based on management's best assessment of Moscow CableCom's and AKADO's strategic and financial position and of future market conditions and trends and involve substantial risks and uncertainties. The actual outcome may differ materially from these statements. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements, including lack of operating history of AKADO, liquidity difficulties, developments in the marketplace for cable services in Moscow, Russia, technological changes, operating in the Russian Federation, including general economic, political, social and tax conditions and legislative and regulatory matters affecting the cable industry, and changes in generally accepted accounting principles are described in the our Annual Report on Form 10-K /A for the year ended December 31, 2005 and other public filings made by us with the Securities and Exchange Commission, which descriptions are incorporated herein by reference. There may be other risks that we have not described that may adversely affect our business and financial condition. We disclaim any obligation to update developments of these risks or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments. MOSCOW CABLECOM CORP. Consolidated Condensed Balance Sheets (unaudited) (In thousands, except per share data) September December 30, 2006 31, 2005 Assets (restated) Current assets: Cash and cash equivalents $24,090 $5,442 Marketable securities 2,802 3,322 Trade receivables, less allowance for doubtful accounts of $173 and $111 146 252 Inventories, net 1,796 1,237 Taxes receivable 7,102 3,523 Deferred costs 713 470 Deferred income taxes 552 398 Other assets 4,372 1,845 Total current assets 41,573 16,489 Property, plant and equipment, net 49,409 25,730 Construction in progress and advances 13,839 9,563 Prepaid pension expense 5,347 5,111 Intangible assets, net 4,680 4,850 Goodwill 4,695 4,409 Investment in Institute for Automated Systems 7,190 7,128 Deferred costs 955 712 Other assets 1,658 716 Total assets $129,346 $74,708 Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt $571 $598 Payable to affiliate 1,139 531 Accounts payable and accrued liabilities 11,380 4,849 Deferred revenue 209 354 Total current liabilities 13,299 6,332 Note payable to shareholder 32,485 20,211 Long-term debt, less current maturities 2,947 1,773 Other long-term obligations 854 720 Deferred revenue 551 380 Deferred income taxes 3,386 2,911 Total liabilities 53,522 32,327 Commitments and contingencies Stockholders' equity: Series A cumulative convertible preferred stock, no par value; 800,000 shares authorized; 149,962 shares and 150,144 respectively, shares issued and outstanding, liquidation preference $18.75 per share 2,789 2,792 Series B convertible preferred stock, $.01 par value, 25,000,000 shares authorized 4,500,000 shares issued and outstanding 45 45 Common stock, $.01 par value; 40,000,000 shares authorized; 13,752,738 shares and 8,860,746 shares, respectively, issued and outstanding 138 89 Additional paid-in capital 110,818 66,243 Accumulated deficit (39,694) (26,608) Treasury stock, at cost, 24,500 shares (180) (180) Accumulated other comprehensive income 1,908 - Total stockholders' equity 75,824 42,381 Total liabilities and stockholders' equity $129,346 $74,708 MOSCOW CABLECOM CORP. Consolidated Condensed Statements of Operations (In thousands, except per share data) (unaudited) Three months ended Nine months ended September 30, September 30, 2006 2005 2006 2005 (restated) (restated) Sales and revenues Subscription fees, connection fees and equipment sales $5,796 $2,367 $15,011 $6,905 Other 49 44 159 138 Total revenue 5,845 2,411 15,170 7,043 Cost of sales Services from related party 1,343 663 3,374 1,678 Salaries and benefits 1,193 377 2,927 950 Depreciation and amortization 1,385 431 3,445 1,273 Other 1,159 657 2,222 1,339 Total cost of sales 5,080 2,128 11,968 5,240 Gross margin 765 283 3,202 1,803 Operating expenses Salaries and benefits 3,777 1,898 9,352 4,622 Depreciation 202 112 618 321 General and administrative 2,465 1,430 6,555 3,918 Total operating expenses 6,444 3,440 16,525 8,861 Loss from operations (5,679) (3,157) (13,323) (7,058) Equity in losses of Institute for Automated Systems (188) (160) (392) (303) Investment income and other income 254 282 570 873 Interest expense (907) (665) (2,464) (1,898) Foreign currency translation gain (loss) 651 6 2,997 (69) Loss before income taxes (5,869) (3,694) (12,612) (8,455) Income tax (expense) benefit (314) (102) (305) 1,219 Net loss (6,183) (3,796) (12,917) (7,236) Preferred dividends (56) (56) (169) (169) Beneficial conversion feature - - - (10,781) Net loss applicable to common shares $(6,239) $(3,852) $(13,086) $(18,186) Loss per common share: Basic and diluted $(0.54) $(0.44) $(1.29) $(2.06) DATASOURCE: Moscow CableCom Corp. CONTACT: Tate Fite, Chief Financial Officer of Moscow CableCom Corp., +7-495-737-5177, ; or Barbara Cano or Breakstone Group International, +1-646-452-2334, Web site: http://www.moscowcablecom.com/

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