Nizhny Novgorod, May, 2004: On May 18 Volga Telecom held a BoD meeting with agenda issues devoted to the AGM, which is to be held on June 22, 2004in Nizhny Novgorod. 

The board of directors of STC gave its preliminary approval for the Company’s 2003 annual report and recommended that the shareholders’ assembly approve the annual report, the annual accounting reports, including the Company’s profit and loss statement and the distribution of profits and losses on the results of the Company’s 2003 financial activity. 

In addition, the meeting featured an examination of the auditor’s statement and the audit committee’s verification of the 2003 accounting reports. 

The BoD of STC also recommended that the annual general shareholders meeting adopt a decision on payment of dividends for the 2003 fiscal year, as follows: 

- Rub 0.9186 per common share in cash from July 15, 2004to December 15, 2004;

- Rub 2.415 per preferred share in cash July 15, 2004to December 15, 2004;

Thus, the amount of dividends to be paid out compared to 2002 will be 130% on commons and 136.5% on prefs.  

The BoD of Volga Telecom adopted a decision recommending that the annual general shareholders’ meeting appoint ZAO Ernst & Young Vneshaudit as the company’s 2004 auditor.