Beginning from November 1, 2004 OJSC FETEC has changed tariffs for local calls (subscriber’s fee) under resolution of Department Russian Federal Tariff Service dated October 19, 2004.

Monthly subscriber’s fee for local calls in Primorye is 170 rubes for CTN and VTN individual subscribers (against 130 rubles), 250 rubles for CTN and VTN corporate subscribers in South Primorye (against 200 rubles) and 320 rubles for CTN and VTN in North Primorye (against 270 rubles).

In Kamchatka region subscriber’s fee for local calls is 205 rubles for CTN individual subscribers (against 160 rubles) and 160 rubles for CTN (against 120 rubles). Fee for CTN and VTN corporate subscribers is 330 rubles (against 275 rubles).

In Sakhalin region subscriber’s fee for local calls is 230 rubles for CTN and VTN individual subscribers (against 180 rubles) and 320 rubles for CTN and VTN (against 260 rubles).

In Jewish Autonomous region subscriber’s fee for local calls is 170 rubles for CTN individual subscribers (against 130 rubles) and 150 rubles for VTN (against 110 rubles). Fee for CTN and VTN corporate subscribers is 200 rubles (against 150 rubles).

In Magadan region subscriber’s fee for local calls is 240 rubles for CTN individual subscribers (against 190 rubles) and 165 rubles for VTN (against 125 rubles). Fee for CTN corporate subscribers is 360 rubles (against 300 rubles) and 270 rubles for VTN corporate subscribers (against 220 rubles).

In Khabarovsk region subscriber’s fee for local calls is 200 rubles for CTN and VTN individual subscribers (against 160 rubles) in the North and 180 rubles (against 140 rubles) in the South. Fee for CTN and VTN corporate subscribers is 390 rubles (against 340 rubles) in the North and 250 rubles (against 200 rubles) in the South.

In Amur region local call tariff for CTN individual subscribers is 260 rubles (against 210 rubles) in the North and 190 rubles (against 150 rubles) in the South. Tariffs for VTN subscribers are 210 rubles (against 170 rubles) and 160 rubles (against 130 rubles) in the North and South respectively.

Fee for CTN corporate subscribers is 500 rubles (against 450 rubles) in the North and 330 rubles (against 270 rubles) in the South. Tariffs for VTN subscribers are 500 rubles (against 450 rubles) and 330 rubles (against 270 rubles) in the North and South respectively.

In average subscriber’s fee for local calls is increased by 22.2% for organizations and by 28.2% for individual subscribers. According to preliminary evaluation the increase in subscriber’s fee will result in proceeds increase as early as in the 4th quarter, in general income from subscriber’s fee is expected to raise by 4.4% in 2004.

Long-distance call tariffs have been approved as limited and left unchanged for most busy hours (8:00 till 22:00 on workdays). At the same time the Company may reduce long-distance call tariffs for less busy hours (22:00 till 8:00 on workdays and 24 hours on Saturday, Sunday and holidays) by 60-80% of limit tariffs.