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Moscow City Telephone

March 19, 2003

On 18 March 2003, Closed Joint Stock Company “Rating Agency “Expert RA” (Russ.) announced the raise of the rating of PJSC Moscow City Telephone Network corporate bonds of A1 and A2issues, as well as of conferring credibility rating “A” on the Company’s corporate bonds of A3 issue.

The raise of the PJSC MGTS corporate bonds rating was carried out following the monitoring of the credibility rating of the said securities. As a result of actualizing the rating of the bonds of the aforementioned issues, the “Expert PA” Rating Agency made a decision to raise the bonds rating from “B++” up to “A” level by this country’s national rating scale.

The “A” ratings conferred on the PJSC MGTS bonds mean that the Company’s securities in question enjoy a high credibility standing, with the risk of their issuer’s refusal to meet its liabilities in part or in total being low.

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