On October 1, 2003, a next meeting of the JSC CenterTelecom Board of Director was held at which a number of decisions were taken on the Company's current activity and further development of telecommunications infrastructures in the constituent regions of the Central Federal District.

It was decided to establish permanent bodies auxiliary to the Board of Directors. These are the three committees as follows: Personnel and Remuneration, Corporate Management, as well as Budget and Investment Planning. Regulations governing the activity of the Board of Directors Committees and specifying their terms of reference, as well as specifying membership-forming and operation procedures, were adopted. Drafting the Regulations, the Company followed the JSC CenterTelecom Declaration of the Principles of Corporate Behavior.

The Board of Directors approved the Corporate Marketing Strategy which was highly appraised by the discussers. The adoption of such document is especially urgent and pressing in the context of the Russia's liberalized telecommunications services market environment. The following strategy compo-nents are considered to be the key factors of success: expansion and optimization of the spectrum of the products and services, offering of the most efficacious comprehensive decisions in order to satisfy the solvent demand in all the segments of the developing market.

03.10.2003