The Moscow Interbank Stock Exchange held a tender at its trading floor to determine the coupon rate of the 3rd issue of the CenterTelecom bonds.

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 is determined on the first day of their placement following the results of the tender at the Moscow Interbank Stock Exchange. The rates of the five follow-up coupons are equal to that of the first one. Offer for the prior redemption - 12 months after the bonds placement at the price of 101.5% of par value.

Per the results of the tender, the first coupon rate made up 12.35% per annum; the effective profitability in correlation with the offer amounts to 14.27% per annum, and the profitability with the repayment - 12.73% per annum.

Seventy-two (72) proposals in the total accounting for RUR 1162.778 million were satisfied following the results of the tender. Since the rules of procedure do not provide for the bonds supplementary placement within the framework of negotiated transactions on the first day of the placement, the remaining part of the bonds will be placed during 14 days in the course of their supplementary floatation at the Moscow Interbank Stock Exchange from 17 September to 17 October 2003, 10:15-19:05.

The arrangers of the issue are JSC "MDM-Bank" and CJSC IK "Troika Dialog".

JSC "Bank for Foreign Trade" and CJS "KB "GUTA-BANK" took part in the bonds issuance in the capacity of Co-Arranger and Co-Underwriter respectively.

Joint Stock Company CenterTelecom is one of the biggest inter-regional telecommunications operators, which was established in 2002 within the framework of restructuring of the "Svyazinvest" Holding. The Company performs its activities in the 17 administrative territories forming the Central Federal District of Russia and provides users with a broad spectrum of telecommunications services comprising conventional telephony, Internet, data transfer, wireless and cable television, and those of the VHF wired and wireless radio broadcasting network, etc. The Company supplies services to over 5.6 million subscribers with the installed capacity exceeding 6 million lines. Twenty per cent (20%) of the revenue and 24% of the access lines of the "Svyazinvest" Holding fall to the share of the Joint Stock Central Telecommunications Company. The two bonded loans JSC CenterTelecom issued in 2001-2002 are actively circulating at the Moscow Interbank Stock Exchange and the Russian Trading System.

16.09.2003