Moscow, March 17 2006 – CenterTelecom (RTS: ESMO, ESMOP; OTC: CRMUY), informs about payment of 5^th coupon on interest-bearing documentary non-convertible series 03 bearer bonds at the rate of 123 160 000 (one hundred twenty three million and one hundred sixty thousand rubles) rubles.

The first coupon rate is determined pursuant to the Decision on Securities Issue (state registration number 4-18-00194-? dated August 1, 2003) approved by the Board of Directors of OJSC «CenterTelecom» on June 18, 2003. According to the results of the MICEX auction, the first coupon rate was set at 12.35% per annum. The rates of the other coupons amount to the first coupon rate.

Amount of interest payable per Issuer’s Bond amounted to 61.58 (sixty one 58/100) rubles.

The Issuer’s obligation was met in full measure on March 17, 2006.

From the date of the 4^th coupon payment (16.09.05) on series 03 bonds up to the date of the 5^th coupon payment

-total volume of transactions amounted to 6.61 billion rubles

-including market transactions – 0.37 billion rubles

-negotiated trades – 3.23 billion rubles

-Repo-transactions – 2.09 billion rubles

-561 transactions were concluded

-including 318 market transactions

-including          negotiated trades – 137

-Repo-transactions – 65

-maximum value was up to 105.0% of the face value

For reference:

State registration number of the issue is 4-18-00194-?, registration date: August 1, 2003. The issue’s volume is 2 billion rubles, maturity period is 1095 days, 6 coupons are provided for the issue coupon period is 183 days, the first coupon rate is set at 12.35%, the rates of 2^nd–6^th coupons are equal to the first coupon rate.

Interest-bearing documentary non-convertible series 03 bearer bonds were placed on September 16-17, 2003. The placement was conducted by means of public subscription, placement value amounted to 100% of the face value (1000 rubles per bond).

Joint-Stock Commercial Bank "Moscow Delovoy Mir" (MDM-Bank) and CJSC "Investment company "Troika Dialog" acted as organizers and underwriters of the issue.

The conditions of the issue envisaged the offer for prior redemption of the bonds one year after the placement. On September 7, 2004 Board of Directors of OJSC «CenterTelecom» made decision to declare public irrevocable offer for acquisition of documentary interest-bearing non-convertible series 03 bearer bonds of OJSC «CenterTelecom» with centralized storage on September 19, 2005. OJSC «MDM Bank» acted as agent for acquisition of the bonds. The company bought 1 million 284 thousand 820 bonds of total number of 2 million bonds of this series. The value of the offer amounted to 101.5% of face value of the securities. Later on, the bought out securities were placed in full on the secondary market.