The JSC CenterTelecom third-issue bonds are successfully placed at the Moscow Interbank Currency Exchange (Fixed Income Section).

The third-issue parameters: volume of bond placement - RUR 2 billion, period of circulation - 3 years. The bonds are issued with a half-year coupon. Price of placement - 100% of the par value. The rate of the first coupon of the bonds was determined on the first day of their placement following the results of the tender at the Moscow Interbank Currency Exchange (Fixed Income Section) being 12.35% per annum, which corresponds to the bonds profitability vs. the annual offer of 14.27% and the profitability vs. bonds repayment - 12.73% per annum. The rates of the five follow-up coupons are equal to that of the first one.

The placement was conducted within the two days' time frame, 16 through 17 September 2003 as is stipulated by the relevant rules of procedure. The coupon rate determining tender was held on the first day of the bonds placement. Seventy-two (72) proposals accounting for RUR 1162.778 million in the total were satisfied per the results of the tender. The remaining part of the bonds was placed on the second day of the session. Thus, on September 17 at 18:00 Moscow timing the CenterTelecom bonds of the third issue were placed in full.

The bond issue Arrangers and Underwriters are JSC "MDM-Bank" and CJSC IK "Troika Dialog".

JSC "Bank for Foreign Trade" and CJS "KB "GUTA-BANK" also took part in the bonds issuance in the capacity of Co-Arranger and Co-Underwriter respectively, with JSC "MDM-Bank" acting as the paying agent.

17.09.2003