On December 24, 2002, the Board of Directors of OJSC Sibirtelecom made a decision to call for an extraordinary shareholders' meeting regarding the acquisition of:

• 49% ownership interest in CJSC Eniseytelecom, a leading mobile services operator providing services using the GSM-900/1800 standard in Krasnoyarsk krai and the Republic of Khakassia, for USD 12.5 mln;
  
  
• 49% ownership interest in CJSC Baikalwestcom, a leading mobile services operator providing services using the GSM-900/1800 standard in Irkutsk region, for USD 8.5 mln.

The extraordinary meeting will be conducted by means of absentee voting. The results of the shareholders' voting will be tabulated and made public on February 12, 2003.

The management of Sibirtelecom strongly believes in the future of mobile business development within the Company. Moreover, full consolidation of CJSC Eniseytelecom and CJSC Baikalwestcom along with development of existing licenses for mobile services in Kemerovo region and the Republic of Buryatia will create a strong base for further development of Sibirtelecom's mobile business.

All necessary information regarding the planned transactions and the procedure of the extraordinary shareholders' meeting will be sent to shareholders along with the voting ballots. OJSC Alfa Bank was appointed financial advisor by OJSC Sibirtelecom in connection with the proposed transactions.

OJSC Sibirtelecom

OJSC Sibirtelecom is one of Russia's largest telecommunications operators and services about 3.5 mln fixed-line subscribers in the Siberia Federal Region. It is also the largest Internet provider in the region, servicing over 3.5 mln subscribers. The largest shareholder of OJSC Sibirtelecom is OJSC Svyazinvest, with 38% of chartered capital. OJSC Svyazinvest is also a controlling shareholder of OJSC Sibirtelecom.

CJSC Eniseytelecom

CJSC Eniseytelecom is a leading mobile services operator providing services using the GSM-900/1800 and NMT-450i standards in Krasnoyarsk krai. As of December 1, 2002 the company was servicing over 66,000 subscribers. CJSC Eniseytelecom also has a 65% stake in CJSC Sayantelecom, a leading mobile services operator providing services using the GSM-900 standard in the Republic of Khakassia. Company revenues for 2001 amounted to USD 11.5 mln. The shareholders of CJSC Eniseytelecom are OJSC Sibirtelecom and Russian Telecommunications Development Holdings Corporation (51% of voting shares and 49% of voting shares, respectively).

CJSC Baikalwestcom

CJSC Baikalwestcom is a leading mobile services operator providing services using the GSM-900/1800 and NMT-450i standards in Irkutsk region. As of December 1, 2002 the company was servicing over 54,000 subscribers. Company revenues for 2001 amounted to USD 10.9 mln. The shareholders of CJSC Baikalwestcom are OJSC Sibirtelecom and Russian Telecommunications Development Holdings Corporation (51% of voting shares and 49% of voting shares, respectively).