Ekaterinburg – November 03, 2004 – Uralsvyazinform (RTS and MICEX: URSI/URSIP) the leading carrier of fixed-line and mobile services in Urals region, Russia reports on the forthcoming bond issue worth RUR3bn.

On November 04, 2004 the non-convertible interest-bearing documentary bearer bonds of 04 series will be placed at the equity market section of Moscow Interbank Currency Exchange. The bonds have nominal value of RUR1,000 (one thousand) with obligatory centralized custody. The total amount is 3 000 000 (three million) making the total value of RUR3,000,000,000 (three billion). The bonds are redeemed on the 1092th day since the first placement day. Early repayment is not provided. The bonds will be placed through a public subscription.

The decision of issue was approved by the Board of Directors on July 28, 2004. The session of the Board convened on October 26, 2004 fixed the placement date for the issue as being November 4, 2004.

The initial coupon yield will be determined at auction, with subsequent approval by the Board of Directors on the same day. The coupons will be paid semi-annually.

The issue managers are Industry and Construction Bank (St-Petersburg) and Rosbank. Svyaz-Bank is mandated as co-manager. The issue coordinator is Svyazinvest.

The funds raised from the issue will supply the investment program as of 2004 (30%) and help restructure the short-term debt (70%).

For additional information, please contact IR department on tel. (007 343) 379-12-17 or e-mail: investor@gd.usi.ru. The most recent company information is also available at www.uralsviazinform.com or URSI_RU page in Bloomberg system.