On May 18, 2004 the annual session of the board of directors of OJSC “VolgaTelecom” was held; its agenda included the issues related to holding of annual general meeting of OJSC “VolgaTelecom” stockholders which is to be held on June 22, 2004 in Nizhny Novgorod.

The Board of directors of OJSC “VolgaTelecom’ preliminary approved the Company’s annual report for 2003 and recommended to the annual general meeting of stockholders to approve the annual report, annual accounting statement, including the Company’s profit and loss statement, and also the distribution of the Company’s profit and loss based on the results of the report (2003) fiscal year.

The Board of directors considered the auditor’s report and the Company’s auditing committee report based on the results of the check of annual accounting statement for 2003.

The Board of directors recommended to the annual general meeting of stockholders to approve the dividends for 2003:

• on ordinary shares in the amount of 0,9186 ruble per share in money form starting from 15.07.2004 till 15.12.2004.
• on preferred shares in the amount of 2,4510 rubles per share in money form starting from 15.07.2004 till 15.12.2004.

Thus, the rate of growth of dividends size as compared with 2002 will make 130% on ordinary shares and 136,5% on preferred shares.

The Board of directors recommended to the annual general meeting of stockholders to approve CJSC “Ernst & Young Vneshaudit” as the Company’s auditor for 2004.