On September 25, 2003, the Board of Directors of Siberia Telecom (Company) passed a resolution to approve the sale of a 30% stake in Siberian Cellular Systems-900 (SSS – 900), valued at USD$28,600,000, to Mobile TeleSystems.

On November 14, 2003, Reestr (registrar of SSS - 900) completed the transaction involving transfer of the ownership rights of SSS – 900.

On November 19, proceeds from the sale of a 30% interest in ZAO SSS – 900 were credited to the Company’s settlement account.

Proceeds from the deal are scheduled to be invested in the Company’s expanding cellular business.

Alfa Bank acted as the Company’s financial consultant in the deal.