Moscow City Telephone Network sales to RAS grew as of the end of 9 months of Y 2004 to reach RUR 10.8 billion, a 15.6 % y-o-y growth.

MGTS net income totaled RUR 1.09 billion against RUR 1.6 billion in January - September 2003.

"The y-o-y decrease of net income is due to revaluation of fixed assets this year and the growth of depreciation charges," - said MGTS financial director Victor Chervony.

The following are the key financial indicators of MGTS for 9 months of 2004 (in RUR thousands):

The reporting for 9 months of 2004 is available in the Annual reports and financial reporting section.

----------------------------------------------------

PJSC Moscow City Telephone Network is one of the biggest not only in Russia, but among the local wire telecommunications companies in Europe too. The Company's continual priority task is to provide quality telephone communication accessible to the millions of the Russia's capital-city inhabitants. The MGTS personnel of 20 000 persons supply services to about 4.2 million subscribers. The telephone density in Moscow conforms to the European standards - over 50 MGTS telephones per 100 metropolitan residents. There are about 600 MGTS telephone exchanges in operation, and their number increases year by. There are presently 18 000 pay stations available at the Company's public payphone network. To date, the MGTS share amounts to 80% in the Moscow fixed telecommunications market. The dynamic development of the Company is noted for its stable economic situation, prescheduled on-going income growth rate, and for the amount of provided services on the upgrade. The Central Office of PJSC MGTS is located in Moscow at 12, bdg. 3, Petrovskiy Boulevard, Moscow, Russia. The Company's Internet address is www.mgts.ru.

For further details, please approach the Department of Information and Public Relations - PJSC MGTS.
Tel: +7 (095) 950 0623, fax: +7 (095) 950 0622,
E-mail: pressa@mgts.ru