The OAO Moscow City Telephone Network (MGTS) held an annual general meeting of its shareholders on June 7. MGTS General Director Vladimir Lagutin reporting to the General Meeting said MGTS had, during 2002, succeeded in resolving some of its urgent problems, including expansion of the network's installed capacity by 81,899 numbers. In the accounting year, MGTS posted a net profit of Rb 1.13 billion.

The Shareholders meeting approved OAO MGTS's annual report for 2002, appointed external auditors for 2003, and elected a new Board of Directors of 12 members, including, among others, A.Yu. Goncharuk, President of ZAO Telekom; D.L. Zubov, Vice Chairman of SISTEMA JSFC's Board of Directors; and A.L. Leiviman, member of SISTEMA JSFC's Board of Directors.

The Shareholders resolved to pay annual dividends on ordinary and preference shares.

??? MGTS is one of Europe's biggest local wired communication networks. Its work force of 20,000 provides communication services to nearly 4.5 million subscribers. At the moment, ??? MGTS's share of Moscow's fixed communication markets approaches 80 per cent.