Financial results (RAS):

1.         Revenues (line item 010.2) stood at Rub 151.05 bln (126.09% compared to 2002);

2.         Operating expenses (line items 020 + 030 + 040.2) stood at Rub 111.63 bln (126.14% compared to 2002);

3.              Sales profit (line item 050.2) stood at Rub 39.42 (125.95% compared to 2002);

4.         Net profit (line item 190.2) stood at Rub 19.48 (205.91% compared to 2002);

5.         Capital investments amounted to Rub 46.4 bln (169.3% compared to 2002).

Operating results:

1.         LD and ILD traffic – 14,697,584,000 min. (115% compared to 2002);

including international traffic – 1,155,519,000 min. (108.81% compared to 2002);

2.         Average number of staff – 350,306 (96.2% compared to 2002).

Comments by Svyazinvest CEO V.N. Yashin:

In 2003 Svyazinvest continued to expand at a steady pace, displaying robust growth of its financial and operating indicators.  The FY 2003 results highlight the positive changes achieved and the increased investment appeal of the holding’s super-regional subsidiaries.  The main task for 2004 involves continuing the process of restructuring the business of regional operators.