On 29 May 2003 "UTK" PJSC Board of Directors adopted the resolution on placement of the Company's bonds. The Company plans to place its bonds in July 2003. Bond issue amounting to RUR 1.5 bln will be placed with a par value of 1000 rubles by public subscription in the MICEX Stock market section with a duration period of 3 years. Bonds are issued in the form of non-convertible interest-bearing documentary payable to bearer bonds of 01 series with compulsory centralized deposit.

Provisions are made for six half-year coupons. Interest rate of First Coupon will be determined during the tender on bonds'distribution. Interest rates of other Coupons will be equated with the First Coupon interest rate.

The bond issue is sponsored by "Renaissance Capital-Financial Advisor" Ltd. and "Promishlenno-stroitelniy bank" OJSC (Saint Petersburg).

"Renaissance Broker" Ltd. is appointed the issuer's underwriter; non-commercial partnership "National Depository Center" (NP NDC) is appointed Depositary and Paying agent.

The obtained capital will be allocated to "UTK" PJSC investment projects of 2003 Plan of capital construction, the majority of which will be allocated to acquisition of equipment for extension and construction of new digital telephone exchanges and high-speed Internet access nodes, increase of the length of the Company's communication networks.

After their registration by FCSM of Russia Resolution on bond issue, Prospect of bond issuance and Investment memorandum will be placed on the Company's corporate site WWW.STCOMPANY.RU.