OJSC Sibirtelecom declares its preliminary results for 2003 according to Russian Accounting Standards.

• Revenue - 15,45 RUR billion (+26,5% compared to the last year);
• Revenue from sales of telecom services - 15,05 RUR billion. (+26,6% compared to the last year), including:
• Revenue from urban telephone communications services - 5,20 RUR billion (+26,7% compared to the last year);
• Revenue from rural telephone communications services - 0,86 RUR billion (+28,0% compared to the last year);
• Revenue from domestic long-distance communications - 6,61 RUR billion. (+33,7% compared to the last year);
• Revenue from international long-distance communications - 0,92 RUR billion (+10,2% compared to the last year).

Operating costs will stood at 12,16 RUR billion. (+28,9% compared to the last year), thus the structure of costs will develop as follows:

• wages and salaries - 32,8% (33,4% in 2002);
• depreciation - 8,7% (8,0% in 2002);
• material expenditures - 7,6% (8,2% in 2002);
• payments to Rostelecom - 14,3% (14,4% in 2002);
• taxes - 11,6% (13,1% in 2002);
• other expenses - 24,9% (22,8% in 2002);

According to preliminary data, financial results will be the following:

• Operating income - 3,29 RUR billion (+18,4% compared to the last year);
• Income before tax - 2,36 RUR billion (+157,8% compared to the last year);
• Net income - 1,53 RUR billion (+222,9% compared to the last year).

Newly installed switching capacity will make 370 thousand lines (-2,9% compared to the last year), including installed switching capacity in urban networks - 322 thousand lines, in rural networks - 48 thousand lines. The total length of fiber-optical lines installed in 2003 will amounts to 1580 kilometers (+41,1% compared to the last year).

The average number of the Company's employees as of the end 2003 will amounts to 47,4 thousands (-4,5% compared to the last year).

Securities and capital markets Department
shipitsin@sibirtelecom.ru
tel.: (3832) 191 197