The Board of Directors of Central Telecommunications Company passed a resolution (Minutes # 6 dated April 29, 2003) to issue 2,000,000 (two million) secured document interest-yielding non-convertible bonds payable-to-bearer bonds, series 03 with a nominal value  of RUB 1,000 each.  The bonds were placed at nominal value.

Major terms and conditions of the issue are as follows:

1.      Method of placement - open subscription;

2.      Term of placement - the bond placement will get under way no sooner than two weeks following the publication of state registration of the issue and assurance to potential bondholders that access will be ensured to information on this bond issue.

3.      Payouts will be made in cash form using Russian rubles.

4.      Term to yield of the issue will be 1,095 (one thousand ninety five) days from the effective date of the issue.  Effective date and yield date shall be the same.

5.      Redemption and dividend payouts on the issue shall be made using Russian rubles.

6.      No premature redemption of the issue shall be envisaged.

Organizers and underwriters of the issue shall include AKB Moscow Business World (OAO) and Troika Dialog brokerage (ZAO).