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INFORMATION TECHNOLOGIES. MEDIA AND TELECOMMUNICATIONS. ADVERTISING SERVICES

UFG was one of the first Ukrainian non-government entities to invest in these industries. In particular, Computer Group UKRAINA, the Group's IT subsidiary, successfully implemented a number of IT projects in various industries to create solid grounds for further engage­ments. The UFG expansion strategy in this field is based on an integrated approach that envisages implementation of the global IT and telecommunications leaders' most advanced products and technologies to support the development of Ukrainian media and telecommunication sectors.

The total investment by UFG in the field has exceeded US$ 18.4 million.

In 1992, UFG in conjunction with Ukrainian Union of Industrialists and Entrepreneurs founded Dilova Ukraina ("Business Ukraine"), a newspaper that has become one of the leading business editions in Ukraine since that time. In 1994, UFG became a founding partner in Galitzky Kontrakty weekly magazine, which in a short period became Ukraine's best-sold business edition. Both editions are circulated domestically and internationally, including the US, Canada, Germany, UK, France, Poland, Russia and other countries.

Further expanding its activity in the field, Ukrainian Financial Group focused on electronic media. In 1997 the Group became a founding partner in KTM, a leading cable TV operator in Kyiv and nation-wide. KTM provides modern telecommunication equipment, technologies and services to Ukrainian customers. In particular, it was the first company in Ukraine to apply an optic fibre, interactive television and Internet in the Ukrainian cable TV sector. Within its first year of operation, the pool of KTM subscribers exceeded 180,000; in the recent years, KTM audience has doubled. The total investment in this project reaches US$ 1.5 million.

As a result, the project's potential raised an interest from Sigma Blazer, the US investment fund, which acquired UFG's share in KTM in 1999.

In 1997, Ukrainian Financial Group became a co-founder of Radio Stolytsya (Radio Capital), which became one of the top-rated FM radio companies in Kyiv.

With information technologies and telecommunications further taking up their leading stance in global economy, providing strategic advantages and opportunities to the whole nations for fundamental progress, and becoming a leading indicator of the nations' development, UFG perceives this business as a core strategic area with a tremendous potential for a long-term growth.

Along with IT, media and telecommunications, UFG is largely focused on advertising business, providing international class advertising services. In 1993 UFG founded Dialla Communication, a Ukrainian top-rated full-service advertisement agency. The company operates under western management and operational standards, delivering creative ideas, image, style, product and brand solutions to its clients. Dialla's client base includes major Ukrainian businesses and interna­tional companies operating in Ukraine, including NIKE, SIEMENS, BOSCH, HONDA, LE MONTI, and others.

In 1996 UFG became a founding partner with Paris-based IP Arbo Advertising Corporation in IP KYIV, Ukraine's first commercial house providing radio and TV advertisement services. Owning 50% of shares in the newly established company, UFG has invested in the project over US$ 2 million since 1996. At present, IP KYIV is a thought leader on the marketplace, particularly in TV advertisement services.

Ukrainian Financial Group’s plans include further expansion of its advertising business, for which the Group keeps an eye on the business developments and trends and explores opportunities for new projects on an on-going basis.




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