On December 9 the meeting of Aeroflot Board of Directors was held for the first time after the special stockholders’ meeting.

Aleksandr Zurabov was elected the Company’s President – the Chairman of the Board of Directors.

Aeroflot member of Board, Deputy Chairman of AKB National Reserve Bank Board Leonid Dushatin has become the Chairman of the Auditing Commission of the Board of Directors. He has substituted Gregory Finger, NCH Advisors Inc. Moscow Department Executive Officer, who wasn’t elected to the new Board of Directors.

The Board of Directors thanked Gregory Finger for the productive work and offered him further work in the Board as a member of the Auditing Commission.

There was considered the airline company’s strategy development conception and approved the Board’s proposal on advanced growth of air carriages.

The Board of Directors’ members concluded that realization of renovated strategy development conception of the Company for the period up to 2010 depends much upon the new passenger terminal construction to be build in Sheremetyevo before 2007 and significant renewal and increase of aircraft fleet. The air line company’s carriages, incomes and capitalization are supposed to be increased no less than twice till 2010.

There were discussed Aeroflot results for 9 months of this year. The Company’s incomes increased by 8.2% for 9 months compared with 2002.

As a result of the Company’s efficient production operation net income (unappropriated balance of the financial year) on management accounts for 9 months of this year amounted to 2686 million rubles vs. planned 1840 million rubles.

The Board of Directors approved the production plan and the budget for 2004. 6,800,000 passengers are to be transported (15% growth) and 2708 million ton-kilometers are to be made (20.4% growth). Expected incomes of 2004 are to amount to 1840 million USD or 120% compared with 2003. Net income increase by 13% has been planned.

Operation indicators are to rise more than twice (206.6) in comparison with 2003.

The Board of Directors considered a very important issue of freight carriages development, it supported the Company’s Board proposal to increase significantly freight carriages in 2004-2006. Proposals on freight air fleet restructuring were also approved. Freight carriages growth rate is to increase no less than by 25%.

The Board of Directors also made necessary decisions on other issues of the air line company’s operation activities.

Public Relations Department

12. 12. 2003

Press center