Nizhny Novgorod, December 2004: As of December 15, 2004 OJSC “VolgaTelecom” paid over 412 million rubles of dividends on ordinary and preferred stock charged basing on the results of the Company’s activity for 2003 fiscal year. The resolution on the payment and the size of dividends were approved by the general meeting of shareholders (minutes ? 4 of June 23, 2004).

Total amount of dividends charged on ordinary stock – 225 947 662 rubles, total amount of dividends paid on ordinary stock – 223 177 987 rubles. The size of dividend charged on one ordinary share was 0,9186 ruble.

Total amount of dividends charged on the issuer’s preferred stock - 200 941 317 rubles, total amount of dividends paid on preferred stock - 189 352 726 rubles. The size of dividend charged on one preferred share was 2,4510 rubles.

The dividends were paid in cash.

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OJSC “VolgaTelecom” is a part of “Sviayzinvest” holding and is one of the biggest interregional carriers in Russia. In the framework of electric communication industry restructuring, carried out by the holding, on November 30, 2002 11 regional electric communication enterprises of the Volga Federal District were consolidated into OJSC “VolgaTelecom”.

OJSC “VolgaTelecom” charter capital is 1 639 764 970 rubles. It is divided into 245 969 590 ordinary shares and 81 983 404 preferred shares with face value 5 rubles per a share. The core owner is OJSC “Sviayzinvest” - 38% of the charter capital. The shares of the Company are traded at RTS and MICEX. Since 1997 I-level American Depositary Receipts program is carried out, the specified receipts being traded at Frankfurt, Berlin stock exchanges and at the USA OTC market.

The proceeds of the Company in 2003 amounted to 14,7 billion rubles, the net profit – about 2 billion rubles. The installed capacity of the consolidated company is over 4,5 million lines.