Rostelecom announced its Q1 2002 results in accordance with Russian Accounting Standards

• Domestic long distance traffic volume grew by 13%, international outgoing- by 15% compared to Q1 2001;
• Revenue* was up 15%**, reaching Rbl 4 986 mn;
• Growth in operating profit was 76% with operating profit amounting to Rbl 2 072 mn;
• Net profit was Rbl 1 210 mn or 142% higher than in Q1 2001.

Domestic long distance (DLD) traffic was up 13% versus Q1 2001, reaching 1 636 million minutes. DLD revenues increased by 36% with revenues from regional operators growing by 67%.

The Company saw a 15% growth in international outgoing traffic (ILD)volume, which reached 282 million minutes, while Rostelecom ILD proceedsfrom Russian clients and operators were up 4% compared to Q1 2001.

Total revenue reached Rbl 4 986 mn, which is 15% higher than in Q1 2001. Operating costs amounted to Rbl 2 914 mn decreasing by 8%, while administrative costs decreased by 2%.

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

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