Moscow August 18, 2004 - CenterTelecom (RTS: ESMO, ESMOP; OTC: CRMUY) announced that Standard&Poor's assigned the company a credit rating on the Russian scale, level ruBB + to CenterTelecom Series 04 priority ruble debentures.

Issue features:
Volume placed - RUR 7 billion,
Maturity - 5 years.
Coupons are paid semi-annually.
Bonds are placed at 100% of the par.

On the first day of the placement, as of the results of the bidding at MICEX, the rate of the first coupon was set at 13.8%. The amount of the subsequent 9 coupons is equal the first coupon. The bonds are putable in 2 years and 3 months after being placed at the price which is determined as the sum of two figures:

1. 100% (one hundred percent) from the bonds nominal value;
2. Accumulated coupon income as of the day of put according to the order stipulated by the Resolution to issue securities and the securities Prospectus approved by CenterTelecom Board of Directors on April 28, 2004 (protocol # 33 as of May 05, 2004).

The issue's lead manager and issue underwriter: AKB ROSBANK.

Co-managers and co-underwriters: Troika Dialog, Soyuz Bank, AKB Promsvyazbank, AKB Svyaz Bank, KB Guta Bank, Web-Invest Bank, ZENITH Bank, International Moscow Bank, ING Bank (Eurasia).

CenterTelecom is a leading fixed communications company providing the entire range of telecommunication services in the Central Federal region where over 20% of the population of Russia resides.

CenterTelecom offers all telecommunication services, including telephony service, the Internet, IP telephony, data communications, CATV, wired and VHF broadcasting. The company actively develops modern multiservice and SDH networks as well as new radio access systems.

The Company trades on RTS (ESMO, ESMOP), Moscow Interbank Currency Exchange (CTEL, CTELP) and has ADR Level 1 common stock program (CRMUY).

Contacts:

Copyright © 2004 Joint-Stock Central Telecommunication Company