A total of RUR 290.5 million or 15% of the Company's Y 2003 net income totaling RUR 1.937 billion will be paid in dividends between July 15 and December 31 2004.

Y 2002 common dividend totaled RUR 0.68 per share and RUR 7.055171 per share. The total dividend was RUR 166.926 million.

The shareholders meeting also elected a new Board of Directors and the Revision Committee, as follows:

The new Board of Directors

• Akulich, Vladimir
• Vasadze, Levan
• Vronets, Alexandr
• Goncharuk, Alexandr
• Drozdov, Sergey
• Zabuzova, Elena
• Ismailov, Nail
• Lagutin, Vladimir
• Ragozin, Irina
• Savchenko, Victor
• Smirnov, Mikhail
• 1Yashin, Valery

The new Revision Committee:

• Belyaev, Konstantin
• Krzhechevskaya, Svetlana
• Platoshin, Vasily
• Prokofyeva, Irina
• Tomilina, Natalia

Deloitte and Touche CIS was re-appointed the Company's external auditor for 2004.

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PJSC Moscow City Telephone Network is one of the biggest not only in Russia, but among the local wire telecommunications companies in Europe too. The Company's continual priority task is to provide quality telephone communication accessible to the millions of the Russia's capital-city inhabitants. The MGTS personnel of 20 000 persons supply services to about 4.2 million subscribers. The telephone density in Moscow conforms to the European standards - over 50 MGTS telephones per 100 metropolitan residents. There are about 600 MGTS telephone exchanges in operation, and their number increases year by. There are presently 18 000 pay stations available at the Company's public payphone network. To date, the MGTS share amounts to 80% in the Moscow fixed telecommunications market. The dynamic development of the Company is noted for its stable economic situation, prescheduled on-going income growth rate, and for the amount of provided services on the upgrade. The Central Office of PJSC MGTS is located in Moscow at 12, bdg. 3, Petrovskiy Boulevard, Moscow, Russia. The Company's Internet address is www.mgts.ru.

For further details, please approach the Department of Information and Public Relations - PJSC MGTS.
Tel: +7 (095) 950 0623, fax: +7 (095) 950 0622,
E-mail: pressa@mgts.ru