The Meeting approved the Company's annual report, its financial statements including the profit and loss statement (profit and loss accounts), as well as the allocation of profits and losses of the Company based on its 2002 financial performance.

In his report "UTK" PJSC General Director Vladimir Gorbachev pointed out that the Company's continuing strong performance was confirmed by its efficiency indicators. Execution of the Company's investment program and the significant growth of its subscriber base as well as the introduction of new high-tech methods enabled "UTK" PJSC to generate over RUR 10.5 billion in revenue in 2002, which is up 28% compared with 2001. In 2002 over 374,000 new lines were put into service in the Southern Federal District. 2002 net profit exceeded RUR 1.561 billion, which is almost 60% more than in 2001.

The Meetings elected the new members of the Company's Board of Directors, 11 directors in number. The 5-member Auditing Commission of "UTK" PJSC was also elected. The new composition of the Board of Directors is as follows:

• Stanislav Petrosovich Avdiyants - Executive Director - Director of Economics and Tariff Policy Department, "Svyazinvest" OJSC ;
• Vadim Yevgenievich Belov - Deputy General Director, "Svyazinvest" OJSC
• Mikhail Borisovich Vasilyev - Head of the representative office of NSH Advisors, Inc.
• Vladimir Lukich Gorbachev - General Director, "UTK" PJSC ;
• Alexander Leonidovich Merzlenko - Director of the investment banking services department, "Renaissance Capital" Limited Company;
• Georgy Alekseyevich Romsky - Deputy General Director, "Svyazinvest" OJSC;
• Stanislav Nikolayevich Panchenko - Deputy General Director, "Svyazinvest" OJSC;
• Irina Petrovna Ukhina - Deputy Director of the Corporate governance Department, "Svyazinvest" OJSC;
• Andrey Anatolyevich Shchepilov - Head of the shareholders market committee division of Equity Capital Department, "Svyazinvest" OJSC;
• Igor Vilgelmovich Volkovysky - Head of Administrative Department of the Office of the Presidential Plenipotentiary in the Southern Federal District;
• Denis Viktorovich Kulikov - Expert, Investor Protection Association

The Auditing Commission of the Company was elected as follows:

• Natalya Vladimirovna Boyarskikh - Chief Accountant of "Kubanelectrosvyaz" - a branch of "UTK" PJSC;
• Lyubov Alexandrovna Greseva - Senior specialist, Department for Internal Audit and Economic Analysis, "Svyazinvest" PJSC;
• Vladimir Vladimirovich Kozin - Director of the Department for Direct Investments and Corporate Financing, "Svyazinvest" PJSC;
• Irina Viktorovna Prokofieva - Director of the Department of internal audit and economic analysis, "Svyazinvest" OJSC;
• Kirill Viktorovich Frolov - Senior specialist, Department for Internal Audit and Economic Analysis, "Svyazinvest" OJSC.

"Ernst and Young Vneshaudit" CJSC was approved as the Company's external Auditor fot the year 2003.

The Meeting adopted the resolution to pay out RUR 0.0812 per one common share and RUR 0.1607 per one preferred share.