On September 30, 2002 the mega-regional telecom merger was completed in the Urals Region.  The merger involves the following telecommunications companies: OJSC Svyazinform Chelyabinsk Region, OJSC Tyumentelecom OJSC Khantymansiiskokrtelecom, OJSC Yamalelektrosvyaz, OJSC Elektrosvyaz Kurgan Region to OJSC Uraltelecom Sverdlovsk Region (hereinafter referred to as the Company).  The stocks and bonds of the merger entities are to be swapped into additional stocks and bonds of the Company.  

The assets and staff of the merged entities are to be transferred to regional branches, which are to be established in the locations where the merged entities will be operating. In September - October 2001 these companies all held general shareholders meetings, at which an absolute majority of votes (over 92 percent) was cast in favor of the mega-regional merger. Then in January 2002 the Anti-Monopoly Ministry of the Russian Federation gave its stamp of approval to the various regional participants in the merger.  At the beginning of June 2002 the Federal Securities Commission of the Russian Federation registered an additional issue of the Company's stocks and bonds, which are to be swapped for securities in the mega-merger.  "The chief executive officer of OJSC Uralsvyazinform, Vladimir Rybakin, said that "This event is the first successful experience in Russia involving the integration of telecom operators under the Conception for the Development of Telecommunications Services approved by the government around the end of 2000.  The merger will allow the Urals telecom business to catch up will global growth levels and meet rising demands for telecom services in the region.  It will also help expedite the integration of the Urals into the global information community of the 21^st century".  LV Finance, a major Russian consulting company, is the Company's adviser for merger-related issues. "In the very near future we are planning to register a report with the RF Federal Securities Commission as required to issue securities and convene the first general shareholders meeting of the mega-regional merger, which will have the task of amending the company's charter and appointing new executive bodies" - said the vice president of LV Finance Mikhail Sosnovsky.