VLADIVOSTOK, January 12, 2005 - Open Joint Stock Company “Far East Telecommunications Company” (US ADR: FEEOY), the leader on the telecommunications market of the Russian Far East, today announces that the Board of Directors approved dividend policy of December 28, 2004.
Dividend policy is the declaration of FETEC’s policy regarding future dividend payments and warranty regarding to the amount of dividends.
“We recognize that the warranties regarding to the amount of dividend payments are very important to investors in conditions of market uncertainty. That’s why the shareholder’s rights satisfaction and increasing of their wealth through the growth of stock’s market value and dividends increasing, are the most important our goals.” – said Alexander Zheludkov, Vise President of Corporate Development.
In accordance to dividend policy, FETEC takes responsibility to send to dividends of ordinary shares not less than 10% of Net Income.
Total amount, sanding to the dividends to preferred shares, equals 10% of Company’s Net Income of the last fiscal year and divided to the amount of shares equals to 25% of Company’s Shareowner Capital.
In case when the amount of dividends, paying by FETEC per ordinary share, is higher than dividend per preferred shares, the amount of dividends of preferred shares will be increased to the amount of dividend of ordinary shares. So dividend per preferred share cannot be lower than dividend per share per ordinary share.
Dividends are announces by FETEC before taxes subtraction.
Dividend policy is available at Company’s web site www.dsv.ru in the section “Corporate Governance”.
To receive more information contact Investor Relation Department:
tel. +7(4232) 208-500, ext. 1306 or e-mail to: email@example.com;
About the company: Open Joint Stock Company “Far East Telecommunications Company” (Dalsvyaz in Russia) is the leader on the telecommunications market on the Russian Far East. Its licensed area covers the territory of 2,000 thou sq km with population over 5.6 million people. Dalsvyaz owns 87% of local, 81% of long-distance and international communications, 72% of Internet market, 100% of cellular market in the region of Magadan Region and 50% of cellular market in Kamchatka Region as of November 1st, 2004. FETEC OJSC is the subsidiary of Svyazinvest OJSC, which holds 38% of company’s share capital. In addition to RTS and MICEX, company’s shares are traded on the over-the-counter market of USA (ADR of the 1st level). To see more information about ADR, please, visit www.adr.com. Company’s official web site is www.dsv.ru.