On April 29, 2003 Uralsvyazinform Board of Directors took a decision to approve placement of RUR 3 bln bonds issue, as well as the respective Decision of issue and Prospectus.

The following parameters of issue have been specified: interest bearing documentary bearer bonds of 03 series, which are subject to obligatory centralized custody of 3 000 000 bonds at nominal value RUR 1 000 each, redeemable on the 1092 day since the beginning of placement. The issue is effected without a preliminary offer.

The overall volume of issue is RUR3 bln., with placement to be made through open subscription.

The yield of bonds is determined as a total of coupon payments, made at each interest period, added with a discount emerging from the difference between redemption price (nominal value) and placement price. The first coupon interest rate is to be bidden on the day of placement. The subsequent coupon rates are equal to the first coupon interest rate. There are 6 coupon payments to be effected until the maturity of bonds.

Moscow Interbank Currency Exchange (MICEX) has undertaken the distribution of the issue. The centralized custody of bonds is provided by “Non-commercial Partnership “National Depositary Center”.

The money gained from the placement will be spent on investment and debt restructuring.

Investment Group “Renaissance Capital” and OAO “Industrial Construction Bank”, St. Petersburg act as Organizers for bond placement.