Moscow, February 16, 2005. CenterTelecom (RTS: ESMO, ESMOP; OTC: CRMUY) reports about the payment of the 1st coupon on Series 04 certificated nonconvertible bearer bonds in the amount of RUR 389 027 348.05 (three hundred eighty-nine million twenty-seven thousand three hundred and forty-eight rubles five kopecks).

The interest on the first coupon was set in accordance with the Securities Issuance Resolution (State Registration Number 4-19-00194-A as of June 29, 2004) passed by CenterTelecom BoD on April 28, 2004. During placement at MICEX the rate of the first coupon was set at 13.80% p.a. and approved by the order of the General Director.

The amount to be paid on one bond is RUR 69.19 (sixty nine rubles 19 kopecks).

The issuer has fully discharged its obligation on February 16, 2005.

Since Series 04 bonds started trading on over the counter market (26.10.2004):

• the total volume of trading amounted to RUR 18.9 billion.
  • of that amount RUR 10.1 billion of Block Trading
  • RUR 8.8 billion of repurchase agreements.
• 963 trades were made
  • of them 523 deals on Block Trading
  • 440 repurchase agreements
• the maximum trading price on the bonds was 108.6% par
• the bonds yield during the period ranged between 9.5% and 11.7% annual.

Issue background information:

Issue state registration number: 4-19-00194-A, the date of the registration: June 29, 2004. The issue volume is RUR 5.623 billion, maturity 1 830 days, the issue has 10 semi-annual coupons, the interest rate on the first coupon was set at 13.8%, the interest on coupons 2 through 10 is set equal to the rate of the first coupon.

Series 04 coupon certificated nonconvertible bearer bonds were placed on August 17-31, 2004. The placement was public at 100% par (RUR 1 000).

The bonds are putable to the issuer on the 821st day after the placement (or the first workday following the 821st day after the placement if the 821st day is a weekend or holiday).

The issue's lead manager and underwriter is AKB ROSBANK.

The co-managers and co-underwriters are Troika Dialogue Investment Company, AKB Soyuz bank, AKB Promsvyazbank, AKB Svyaz-Bank, KB GUTA- BANK.