On April 16 the Supervisory Board of ALROSA met in Moscow under the chairmanship of Alexey Kudrin, Russia’s Minister of Finance and the Board’s chairman.

The Board considered and approved proposed amendments to the company’s Charter to be later put for approval before the Shareholders’ Annual General Meeting. The amendments concern the terms of dividend payments and announcements in the media about the dates of Annual General Meetings.

The Board approved the choice of FBK (OOO Finansoviye and Buhgalterskiye Konsultanti) as the company’s auditor by the Tender Committee. In conformity with the Russian federal law ALROSA had announced an open tender for the audit of the company’s Russian statutory accounts, with four companies sending in their applications and FBK winning the tender. The Board also recommended that FBK be confirmed as the auditor for ALROSA by the Annual General Meeting of Shareholders.

The date and venue of the 2004 Annual General Meeting was approved. It will take place in Mirny, Republic of Sakha (Yakutia), on 19 June.

The Board approved the agenda of the Annual General Meeting. The company’s 2003 financials, including its P & L Statement, and profit distribution, including the payment of dividends, will be put for the approval of the shareholders. The meeting will also elect a new Supervisory Board and the company’s Auditing Commission, finalize the choice of the auditor and authorize amendments to the Charter approved by the Supervisory Board today.

The list of nominees for the new Supervisory Board to be elected by the Annual General Meeting on 19 June was approved.

The Board considered and authorized to elaborate a package of measures for 2004-2006 aimed at enhancing production efficiency, increasing profitability and cost reduction. Specifically, these measures provide for restructuring of the company’s construction divisions with a view to divide customer and contractor functions and further transformation of those divisions into an engineering structure; development of a new concept for the housing and communal services reform; exploration in the areas around the existent mines; reduced material, fuel and energy consumption rates; increased mining equipment and transportation use rate; higher labor productivity; optimization of the existent management structure and personnel; a bigger share of long-term loans in the company’s loan portfolio.