"Standard & Poors's" has also reaffirmed the PJSC MGTS credit ratings according to the international scale, level "B-", and to the national scale, "ruBBB+" level, with a "stable" forecast.

The PJSC MGTS ratings reflect a high level of the Company's profitability, positive net cash flow, and the improvement of debt repayment, which will presumably continue during 2003.

A regular re-examination by the RF Ministry of Antitrust Policy and Support of Entrepreneurship of the telecommunications services tariffs for residential subscribers with forestallment of inflation, has a positive impact on the ratings.

The "stable" forecast of the PJSC MGTS credit rating presupposes that the Company will retain high profitability indicators in 2003, and further the policy line of improvement of its debt liability pattern and reduction of its cost of borrowings. It is also meant that PJSC MGTS will be able to strengthen its position in the Moscow telecommunications market through consolidating its business activity to provide fixed wire telephony and other related services based thereon in the capital of Russia.