Moscow, 25 March 2005. The Board of Directors of OAO NOVATEK, one of the leading natural gas producers in Russia, approved the contribution of NOVATEK’s stake in OOO Khancheyneftegas into the charter capital of OOO Tarkosaleneftegas.

The reorganization is aimed at increasing transparency, optimizing management efficiencies and reducing administrative expenses at the wholly-owned subsidiaries.

Cautionary statement relevant to Forward-looking information

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of NOVATEK. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that we cannot predict with certainty. Words such as “anticipates”, “expects”, “intends”, “plans”, “targets”, “projects”, “believes”, “seeks”, “estimates”, and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.