Moscow, May 17, 2004. CenterTelecom (RTS: ESMO, ESMOP; OTC: CRMUY), a major fixed communications operating company, released its recommendations for the annual shareholder meeting concerning the dividend payment and also approved the meeting’s agenda.

Major performance indicators:

• Sales: RUR 20 890 million ($ 720 million)
• Sales margin: RUR 5 241 million ($ 181 million)
• Net profit: RUR 1 502 million ($ 51 million)
• EBITDA: RUR 4 852.5 million ($ 167 million)
• Line capacity commissioned: 535 thousand lines

On May 11, 2004 the company held a Board of Directors meeting which recommended the following to the annual shareholders meeting:

1. Pay Y 2003 dividend of:
   • RUR 0.285662 per one type A preferred share
   • RUR 0.124867 per common share
2. The dividend will be paid as follows:
   • type A preferred: in cash by August 10, 2004
   • common: in cash by December 31, 2004

The following CenterTelecom shareholders meeting agenda was adopted:

1. Approve the annual reports, including the Company’s Y 2003 Income Statement as well as the Statement of Retained Earnings.
2. Elect the members of the Company’s Board of Directors.
3. Elect the Company’s Revision Commission members.
4. Approve the Company’s auditor for Y 2004.
5. Increase the company’s authorized capital by increasing the nominal value of the earlier placed common and preferred A shares.
6. Amend in the Company’s Bylaws.
7. Amend the Company’s Board of Directors Bylaws.
8. Amend the Company’s Management Board Bylaws.
9. Amend the Company’s Revision Commission Bylaws.
10. Set the Board of Directors compensation.

Contacts:
Elena Sidorovich, phone: (+7 095) 793 23 19, e-mail: esidorovich@centertelecom.ru
Andrey Kalinchenko, phone: (+7 095) 209 57 21, e-mail: kalin@centertelecom.ru

Copyright © 2004 Joint-Stock Central Telecommunication Company