The Accounts Report has been drawn up basing on the book records maintained according to the Russian accounting regulations by way of historical cost. And it has been adjusted bearing in mind the inflation process, in conformity with IAS standards. These standards require that the financial accounts that is prepared using the local currency of a country with hyperinflationary economy, be compiled in the estimation units applicable on the date of striking the balance.

In view of the difference in approaching the formation of the financial results, the accounts data prepared according to the Russian standards cannot be comparable with that made up per the IAS requirements. To exemplify it, the wear and depreciation of fixed assets are calculated in conformity with the term of utilization of the respective-category assets, which are lesser than the Russian ones. Pursuant to the Company's reports, the depreciation amount per the Russian standards made up RUR 772 935 thousand in 2002, and RUR 3 478 065 thousand - according to the international ones. The same applies to the loss from the difference in exchange rates arising from the distinctions in the accounting policy, which constituted RUR 134 008 thousand according to the Russian Accounting Standards and RUR 561 548 thousand - pursuant to the international accounting ones. In the issue, the profit of the Company according to the International Accounting Standards made up RUR 80 659 thousand, while in conformity with the Russian Accounting Standards it amounted to RUR 816 619 thousand.

The CenterTelecom bookkeeping statements are located in the Company's site, section "Financial Accounts".

24.09.2003