Gazprom’s 2004 major interim operating results are a vivid indication of the Company’s competitiveness, dynamic development, stable financial standing and substantial growth potential.

Gazprom is still on a confident pace towards building up natural gas production. Under provisional data for 2004, the Gazprom Group extracted 545.1 bcm of gas, 4.9 and 3.1 bcm up on the 2003 parameters and 2004 target, respectively.

The Yety-Purovskoye gas field and the Pestsovaya area of the Urengoyskoye gas condensate field (brought on stream in 2004) as well as the 100 bcm/y Zapolyarnoye field will play an essential role for the gas production build-up.

Gas condensate and oil extraction also climbed to 12 mln t, 1 mln t up on the 2003 production amount.

The year 2004 saw 32.4 bcm of gas and 11.3 mln t of gas condensate & oil processed as well as 5.2 mln t of sulfur, 2 mln t of gasoline, 1.7 mln t of diesel fuel, 1.85 mln t of liquefied gas and 393 thou t of oil fuel produced.

Gazprom’s 2004 gas exports to outside the FSU and to the CIS & Baltic States accounted for roughly 140.5 and 52.2 bcm, respectively, 7.6 and 9.6 bcm up on 2003.

Russian consumers received via the United Gas Transmission System (UGTS) 289.7 bcm of gas, 0.6 bcm up on 2003.

35 Russian independent gas producers (4 companies up on 2003) gained access to the UGTS, channeling 60.2 bcm of gas, 7.8 bcm up on 2003.

At the same time, Gazprom transmitted 50.2 bcm of gas originating from Kazakhstan and Central Asia, 3.3 bcm up on the 2003 identical parameter.

Over 2004, Gazprom built up 390 mln tce of hydrocarbon reserves, laying big emphasis on expanded exploitation of natural resources and planning to countervail hydrocarbon reserve increment and production rates.

According to preliminary estimates, the Company coped with the 2004 Cost Reduction Program, cutting expenses by RUR 30 bln and successfully divesting its non-core assets.

Gazprom’s 2004 gas marketing in outside the FSU is expected to yield a record high of some $19.2 bln in foreign currency earnings.

The market value of Gazprom’s LSE-listed ADSs and domestically-traded shares grew 37.1% (or 1.37fold) and 114.2%, respectively.

While the Company’s capitalization jumped to $67.48 bln or 98.2%, the RTS index reflecting the Russian stock market dynamics in general, climbed only 8.26%.

“It is our strategic challenge to transform Gazprom into a large, vertically integrated energy firm being a major and highly competitive player on the global energy market.

For this purpose, we’ve been intensively involved in diversifying our sales markets, transmission routes and output supplied. In 2004, Gazprom became active in the LNG production, transmission and marketing sector, identifying a broad spectrum of potential counterparts in LNG shipments to Central America. Special emphasis also fell on liquid hydrocarbon and power generation development.

Last year, Gazprom successfully finalized the first phase of self-restructuring targeted at the parent company’s enhanced business efficiency. We’ve come close to implementing the second phase of intra-corporate reforms, i.e. to optimizing the core business management structure at the subsidiaries’ level,” – stated Alexey Miller, Gazprom’s Management Committee Chairman.

DIVISION OF RELATIONS WITH MASS MEDIA