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Moscow City Telephone

May 7, 2003

On 6 May 2003, the annual Meeting of the Board of Directors of Public Joint Stock Company Moscow City Telephone Network (MGTS) was held. The Board members considered questions associated with the holding of he Company's annual General Meeting of Shareholders.

The Board of Directors approved the draft annual report, the annual accounts, including the profit and loss statements of the Company, and the allocation of profit and losses as per the results of the reporting (2002) fiscal year.

The Board recommended that the annual General Shareholders' Meeting approve the annual dividend in the amount of 0.68 RUR per common share and 7.055 RUR per preferred share.

The Board of Directors took a decision to offer the General Meeting of Shareholders 14 candidacies for electing 12 members of the PJSC MGTS Board of Directors.

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