Moscow, June 8, 2004 - CenterTelecom (RTS: ESMO, ESMOP; OTC: CRMUY).

The company’s management held a meeting with the analysts and mass-media dedicated to the uniform development strategy of CenterTelecom and its affiliated company, Russian Telecommunication Networks (RTS) operating on the national market under ROSNET brand.

The meeting was chaired by Deputy General Director and CenterTelecom commercial director Sergey Pridantsev. RTS General Director Sergey Biryukov, RTS board of directors member Vyacheslav Kamnev, telecommunication analysts and journalists participated in the presentation.

ROSNET General Director presented his company’s long-term market strategy and targets. He emphasized the prospects that motivated CenterTelecom to purchase RTS. For CenterTelecom, the main advantage was to gain access to Moscow telecommunications market.

The joint strategy comprises the transformation of RTS into one of the major alternative operators of the Central Federal District and becoming one of the leading national systems through the consolidation of assets of CenterTelecom affiliated companies under RTS brand and the creation of a modern uniform infrastructure in Central Federal District.

In Moscow market, the companies will be concentrating on the development of transport and access networks. In the regional market, primary objectives are to create its own multiservice nodes to expand the integrated telecom services being granted and to develop a nation-wide service card to provide national and international roaming.

CenterTelecom is the leading fixed communications company providing telecommunication services in the Central Federal District with the highest population density in Russia, where about 20 % of the country’s population resides.

CenterTelecom offers the full scope of telecommunication services, including telephony, the Internet, IP- telephony, data transmission, broadcasting and CCTV, wired and VHF broadcasting. The company continues working on the development of fiberoptic and SDH networks as well as new radio access systems.

The company’s shares trade on RTS (ESMO, ESMOP), Moscow Interbank Currency Exchange (CTEL, CTELP), and the company also has ADR-1 on common stock program (CRMUY).

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