Svyazinvest

INFORMATION DEPARTMENT

119121 Moscow, ul. Plyushikha, 55 str. 2; tel: (095) 727-0418,

fax: (095) 727-0475;
pr@svyazinvest.ru

December 4, 2003                                       Moscow

Svyazinvest held a board of directors meeting on December 4, 2003at which the following officials were in attendance:

L.D. Reiman – Russian Minister of Communication;

B.D. Antonyuk – first deputy Minister Communication;

A.V. Anoshkin – assistant head of the presidential administration;

David Giovannis – representative of Mustcom Limited;

V.P. Fatikov – deputy chairman of the Russian Federal Property Fund;

The following issues were on the agenda at the meeting:

·         main results of the operations of Svyazinvest Group for the first nine months of 2003;

·        main results of the operations of Svyazinvest Group for the first 2003;

·        main financial indicators of Far East Telecom and issues concerning the internal activity of board of directors of Svyazinvest.

The board of directors adopted the following resolutions on the above agenda issues:

1. To take note of the preliminary results of Svyazinvest Group for the first nine months of 2003;

Revenues generated from sale of goods (work and services) amounted to Rub 107.3 bln (up 128.3% over 9m 2002);

Expenses attributable to core activities – Rub 77.5 bln (129.7%);

Sales profit – Rub 29.9 bln (124.8%);

Net profit – Rub 15.2 bln (130.6%);

Net profit margin – 19.7%.

2. To take note of the preliminary results of Svyazinvest Group for 2003;

Revenues generated from sale of goods (work and services) amounted to Rub 140.0 bln (up 123.9% over 9m 2002);

Expenses attributable to core activities – Rub 111.3 bln (125.57%); 

Sales profit – Rub 37.8 bln (119.4%);

Net profit – Rub 16.2 bln (149.4%);

Net profit margin – 14.6%.

3. To take note of the analysis of main financial indicators of Far East Telecom. 

Svyazinvest Group includes seven mega-regional telecommunications companies (MRCs) – Central Telecom, North West Telecom, Volga Telecom, South Telecom, Uralsvyazinform, Siberia Telecom, Far East Telecom, national LD and ILD operator Rostelecom, six operators which did not participate in the nationwide merger process, and telecom industry research institute Giprosvyaz.  The companies are licensed to provide local, long distance and international telephone services, data transmission, Internet, ISDN, wireless subscriber access and mobile communication in GSM, NMT-450, AMPS and DAMPS standards.  The average number of staff employed at Svyaiznvest Group is over 351,000.