In the course of preparations for the Company's annual General Shareholders' Meeting, Gazprom's delegation held today a meeting with the Company's shareholders living in the town of Yekaterinburg.

Organized by Uraltransgaz’s top management, the meeting was attended by over 900 people, including Olga Pavlova, Gazprom's Management Committee Member and Head of the Company's Asset Management and Corporate Relations Department, David Gaidt, Uraltransgaz's Director General, Marina Tikhomirova, Head of the Depositary Technologies Division of Gazprombank's Depositary Center, Oleg Kulkov, Deputy Head of a Gazprombank's branch and specialists from Gazprom and the Horizon Investment Company's core business departments.

In delivering her report, Olga Pavlova informed the meeting of the major corporate operating results for 2003 and corporate policy improvement directions as well as clarified tasks and objectives set for the 2nd phase of Gazprom's restructuring.

Shareholders asked a lot of questions on Gazprom's governance structure enhancement prospects. In particular, they were interested in how the Company's restructuring might affect corporate shares. Olga Pavlova elucidated that improving the Company's structure would lead to an increased efficiency of its business, which ultimately would foster investment inflows and, consequently, shares growth. Olga Pavlova specifically emphasized that the reforms being held did not imply Gazprom's disintegration.

At a briefing held at the end of the meeting with shareholders, Gazprom's delegation answered questions on Gazprom's business activities in the Urals region, LNG production and supply prospects, non-core assets divestiture and preparations for the annual Shareholders' Meeting.

Reference:

As of 27 May 2004, Gazprom's shareholders residing in Yekaterinburg owned some 131 million corporate shares, including 41 million held by Gazprom's officers and employees.

Uraltransgaz is one of Gazprom's largest gas transmission subsidiaries. In 2003, the company transmitted over 95.5 bcm of natural gas (101.7% against the target) and recorded earnings of RUR 1.1 billion.

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