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Moscow City Telephone

January 13, 2003

The Public Joint Stock Company Moscow City Telephone Network (MGTS) has started to provide public payphone callers with an access to the federal numbers of the cellular network operators since 1 January 2003.

At an initiatory stage, the service will be furnished to the users of the PJSC MGTS public payphones that have been presently fitted out with an access to the long distance and international communications facilities. As for the rest of the card-operated public payphones, the Company supplies their users with a possibility of an alternative getting through to the cellular network providers' federal numbers (via the subscriber service of a respective cellular network operator).

All direct calls set up through PJSC MGTS public payphones to the federal numbers of the cellular operators, regardless of a subscriber's point of interconnection, will be tariffed basing on a uniform principle: three (3) tariff units per 1 minute of a call. The same tariff rate will be applied in the event of the calls made with the PJSC MGTS public payphones in order to access to the federal numbers of the cellular operators if a called subscriber is located at the other city or country. All the calls initiated via the subscriber service of a cellular network provider are tariffed as intracity ones, i.e. one (1) tariff unit per one (1) minute of a call.

According to the forecast of the PJSC Moscow City Telephone Network Public Payphone Department, this type of service is expected to be in a highly growing demand. It is presumed that providing direct access to the federal numbers of the cellular network operators will substantially increase the traffic volumes of the PJSC MGTS public payphone network, thereby ensuring the growth of the revenues of this particular field of the Company's business.

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