18 August 2004 a regular meeting of ALROSA’s senior management took place at the company’s Mirny office.

The company’s H1 performance was reviewed. Within this period total diamond sales (including ALROSA-Nyurba sales) amounted to US $ 1051.5 million. The registered growth is due to greater efficiency of sales. Polished diamond sales amounted to US $ 65.4 million.

Rock mass extraction was 101.4% of the plan target. Rough diamond output amounted to

US $ 809.1 million, i.e. 102.5% of the target.

Capex amounted to RUR 5769.1 million (which coincides with the plan target). Construction and assembly work fulfilled is estimated at RUR 3067.9 million.

The cost of sales is within the target limits.

The management reviewed and approved the progress in the implementation of the Company’s projects in Angola. Robust dynamics was marked as far as all ALROSA’s current projects in that African country are concerned. ALROSA’s short-term plans in Angola provide for the commissioning of the second stage facilities at the Catoca Mine, commissioning of the first stage of the Camatchia-Camagico project. In December 2005 the first turbine of the hydroelectric power station, now under construction on the Chicapa River, is to be launched. This project will enable the Company to increase the efficiency of the Catoca operation, provide energy for the development of the Camatchia-Camagico mine. It will also serve to implement an important social objective – create new jobs and provide residents of Saurimo, administrative capital of the Lunda-Sul province, as well as some other communities in this area with cheap energy.