Audit firm “ERNST & YOUNG” August 11, 2003 had finished the audit of accompanying consolidated balance sheet OJSC “Dalsvyaz” of year 2002.

Consolidated financial report had made according with merger in 2002 of seven far-east telecommunication companies.

OJSC “Dalsvayz” has accounted for the merger based on the principles of uniting of interests. In applying this method, the company has reflected amounts in the financial statements at their historical carrying amounts as if the entities had been combined from January 1, 2002.

Company revenues was 5,665.6 millions rubles in 2002. 5,545.1 millions rubles was received from sale of telecommunication service, including 219.7 millions rubles from Internet services and 182.8 millions rubles from wireless services.

Income from operations became 400.2 millions rubles, income before taxation and minority interest was 318.2 millions rubles. Net income in 2002 became 73,7 millions rubles. Basic and diluted earnings per share were equal to 0.50 of ruble.

OJSC “Dalsvayz” investments volume in 2002 was 774.3 millions rubles, consist of 732.8 millions rubles for wireline communications services, 24.9 millions rubles for wireless communications services and 16.5 millions rubles for other operations.

Report was made according to purchasing power of ruble in 31 December 2002.