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Moscow City Telephone

March 5, 2003

The Annual Report for 2001 of the Public Joint Stock Company Moscow City Telephone Network (MGTS) has been announced the winner of the Annual Contest "The Best Annual Report - 2001" held by the business journal "Expert", in the "Classics of the Genre" nomination.

In this nomination, the contest jury composed of business world and government departments representatives, and the "Expert" journal executives assessed the correspondence of the nominee-companies' annual reports to the worldwide generally adopted standards. The all-round orientation of a nominee's annual report to the interests of the investor community was also taken into account.

Apart from that of PJSC MGTS, the annual reports of PJSC "Lenenrgo" (St. Petersburg Electric Power Authority, Eng.) and PJSC "AvtoVAZ" (a large motor-car factory in Togliatti, the Volga Region, Eng.) contended for the winning. A primary selection of nominees was made basing on the formal criteria elaborated in the course of long-run discussions between the investors and the lead advisers.

It was stressed in the jury's decision that by the present moment, the quality of the annual reports submitted to the contest had risen considerably and become conformable to the world's most rigid standards. Moreover, the reports of the Russian companies are quite frequently more winsome as compared with those of the Western companies both in terms of completeness of their data and inventiveness of the art designer solutions.

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