Nizhny Novgorod, March, 2004. At its March 11^th BoD meeting Volga Telecom adopted a Code of Corporate Conduct, approved the FY 2004 budget, provisions concerning executive boards attached to BoD and their members, tackled issues concerning relations with VIP clients and the framework for the company’s PR activities.

The Code of Business Conduct was adopted to form and implement into day-to-day business practices business conduct principles based on securing the lawful interests and rights of all shareholders and investors. This move will help the company enhance its management practices, raise its investment appeal and market capitalization and successfully achieve its development targets in the long run.

“This step emphasizes our company’s commitment to corporate governance standards of the international community”, Volga Telecom CEO Vladimir Lyulin pointed out.

The Code of Corporate Conduct is a set of advanced business  practices, based on which the Federal Securities Commission, as the state’s watchdog, investors and other interested parties are able to assess corporate governance standards applied by different companies. What’s more, it is a valuable frame of reference used to set up corporate ethical norms and provides a clear picture of objectives and standards for the company’s executives and governing bodies.

The draft of Volga Telecom’s Code of Corporate Conduct (https://www.volgatelecom.ru) was examined by experts at the International Financial Corporation and the Russian Institute of Directors.

Furthermore, on March 11, 2004, Volga Telecom’s board ruled to establish committees aimed at improving BoD’s performance and also adopted appropriate regulations. These committees will primarily focus on examining and preparing proposals for approval. Moreover, the committees will help BoD members be directly involved in managing the company and being aware of the company’s operations. At present, Volga Telecom has nominated members of three committees, including the Corporate Governance Committee, the Budget and Investment Planning Committee and the Human Resources and Compensation Committee. BoD members, Svyazinvest’ representatives and Volga Telecom’ officials hold seats on these committees.