Financial performance (under RAS):

1.         Revenue (line 010, standard form #2) equaled Rub 43.35 bln (132.77% against the same period last year);

2.         Operating expenses (line 020, standard form #2) totaled Rub 32.25 bln (136.19% against the same period last year);

3.         Sales profit (line 050, standard form #2) amounted to Rub 11.09 bln (123.73% against the same period last year);

4.         Net profit (line 190, standard form #2) reached Rub 5.49 bln (131.11% against the same period last year);

5.         Capital expenditure weighed in at Rub 6.93 bln (158.70 % against the same period last year);

Operating results:

1.         LD and ILD traffic totaled 3,942,772,000 minutes (114.41% on 2002);

including ILD traffic of 290,870,000 minutes (107.48% on 2002);

2.         LD and ILD users averaged 342,426 people (96.70 % on 2002).

Comments by Svyazinvest’s chief executive officer Valery Yashin:

The management at Svyazinvest is pleased with the 1Q 2004 financial and operating results of its subsidiaries. The companies have shown robust performance and were able to achieve all revenue- and profit-related goals for 2004. The telecom carriers operating in the Volgaand Urals regions have been developing at a more dynamic pace than others. The national fixed-line operator Rostelecom set the pace in 1Q 2004 by doubling net profits.