Moscow, April 5, 2005. CenterTelecom (RTS: ESMO, ESMOP; MICEX: CTLK, CTLK?; OTC: CRMUY), a major wireline communications company, has published its Y 2004 RAS financial statements.

The company's Y 2004 income totaled RUR 24 963 million. The major income components are local (42.5 %, RUR 10.6 billion), long-distance and international communication services (38.4 %, RUR 9.6 billion) and income generated by service providers (8.7 %, RUR 2.2 billion). The share of income from value-added telecommunication services grew by 62 % up to RUR 925 million, having risen 3.7 % in the company's sales structure.

In 2004 the company's expenditures amounted to RUR 19 702.1 million, their major components being employee compensations and social payments (42.8 %, RUR 8.4 billion), depreciation charges (13 %, RUR 2.6 billion) and Rostelecom service costs (15.8 %, RUR 3.1 billion).

Sales margin totaled RUR 5 261 million, EBITDA - RUR 5 377.3 million, Y 2004 EBITDA margin totaled 27.3 %, net income - RUR 397.7 million, sales margin totaled 26.7 %, net income margin - 2 %.

In 2004 CenterTelecom invested RUR 9 325 million in the development of communications facilities or 123 % y-o-y. Fixed assets worth RUR 8 742 million were commissioned in 2004.

619 291 lines were commissioned in Y 2004, the network's installed capacity is now 6 798 128 telephone lines.

For more information please contact:

Director of Securities and Corporate Management Department
Elena Romskaya
+7(095)793-23-19
E-mail: esidorovich@centertelecom.ru

Head of Investors Relations Department
Andrey Kalinchenko
+7(095)793-23-40
E-mail: kalin@centertelecom.ru

Director of Information Policy Department
Yana Lavrentyeva
+7(095)793-24-86
E-mail: pr@centertelecom.ru
www.centertelecom.ru

CenterTelecom is a leading fixed telecommunications company providing a wide range of telecom services in the Central Federal District, where over 20% of the population of Russia resides. CenterTelecom offers the full range of telecommunication services, including fixed telephony, Internet, IP-telephony, data transmission, cable TV, wired and VHF broadcasting. The company actively develops modern multiservice and SDH networks as well as new WLL systems. The Company trades on RTS (ESMO, ESMOP), Moscow Interbank Currency Exchange (CTEL, CTELP) and has ADR Level 1 common stock program (CRMUY).