On August 30, 2002 Rostelecom completed the filing of Form 20-F for the year ended December 31, 2001 with the US Securities and Exchange Commission (the “SEC”). Form 20-F/A filed with the SEC contained the Company's consolidated financial statements for the year ended December 31, 2001 audited by Ernst &Young (CIS) Limited.

On August 30, 2002 Rostelecom completed the filing of Form 20-F for the year ended December 31, 2001 with the US Securities and Exchange Commission (the “SEC”). Form 20-F/A filed with the SEC contained the Company's consolidated financial statements for the year ended December 31, 2001 audited by Ernst &Young (CIS) Limited.

ZAO Arthur Andersen acted as an external auditor of the Company in the year 2001. In view of the situation that arose around the Arthur Andersen Worldwide Group and the subsequent termination of the Group, Rostelecom elected not to have the Annual Report on Form 20-F for the year ended December 31, 2001 include the consolidated financial statements with the audit report issued by ZAO Arthur Andersen.

In accordance with the SEC's Release No. 34-45589 dated March 18, 2002, Rostelecom was to file its audited consolidated financial statements as part of Form 20-F/A no later than August 30, 2002.

In connection with the above and in order to promote confidence among shareholders and investors, Rostelecom management asked Ernst & Young (CIS) Limited to re-audit the consolidated financial statements of Rostelecom for the year ended December 31, 2001 (further — the Financial Statements).

Thus, Form 20-F/A filed with the SEC contained the Financial Statements audited by Ernst &Young (CIS) Limited.

The Financial Statements both in Russian and English will be available on Rostelecom web site from September 4, 2002.

Rostelecom management will be glad to answer all the questions related to the changes in the Financial Statements during the Q&A session at a conference call on the Company’s 2002 half-year IAS results.

Rostelecom Headquarters Address: 14, 1st Tverskaya-Yamskaya street, Moscow, 125047, Russia

Phone: +7 (095) 972–82–83 Fax: (095) 787–28–50