Moscow, December 20, 2004 - On December 16, 2004 the Federal Capital Market Service of Russia registered the issue of common par paperless stock and type A preferred par uncertified stock of Central Telecommunication Company (RTS: ESMO, ESMOP; OTC: CRMUY).

The decision to increase the company’s Authorized Capital by increasing the par value of shares from RUR 0.3 up to RUR 3.0 each was passed at the general annual meeting of CenterTelecom shareholders on June 11, 2004, Protocol N 12.

The volume of common shares issue is 1 578 006 833 shares, the par value of each share is RUR 3, the total amount of the issue is RUR 4 734 020 499. The issue has been assigned state registration number 1-04-00194-A.

525 992 822 preferred shares has been issued with the par value of RUR 3 each, the total amount of the issue is RUR 1 577 978 466. The issue has been assigned state registration number 2-04-00194- A. Simultaneously with the state registration of the stock issue, the securities prospectus was registered.

The issue will be placed by converting into shares with the greater par value of the earlier placed stock of the same category. Stock conversion will take place on the 15th (fifteenth) business day from the date of the state registration of the securities issue. There is no preemptive right for the acquisition of the stock placed.