Moscow, February 6, 2006. OJSC «CenterTelecom» quit its participation in authorized capitals of CJSC «Smolensk Cellular Communication», CJSC «Belgorod Cellular Communication» and CJSC «Lipetsk Mobile» and sold the shares of these companies. 

The selling of the CenterTelecom’s shares in the authorized capitals of the mobile operators was conducted in accordance with reorganization model of the Company’s daughter business. The purpose of the reorganization is optimization of the Company’s business structure and improvement of the financial results of its activities.

The decision to sell cellular assets of OJSC "CenterTelecom" was made by the Company’s Board of Directors on December 27, 2005.

OJSC "CenterTelecom" sold its 40% stake in the authorized capital of CJSC "Smolensk Cellular Communication" and 30% stake in the authorized capital of CJSC "Belgorod Cellular Communication" to «Tele2 Russia Vol Holding Gmbh». The 5.9% stake in the authorized capital of CJSC «Lipetsk Mobile» was sold to «??l?2 Sverige AB». The purchasers used their pre-emptive right on acquisition of the sell shareholdings.