Moscow, January 18, 2005. Central Telecommunications Company (RTS: ESMO, ESMOP; OTC: CRMUY) reports about the completion of placement of common registered uncertificated stock and Type A preferred registered uncertificated stock on January 14, 2005. The resolution to issue the shares was registered by The Federal Service of the Financial Markets (FSFR - Russ. abbr.) of Russia on December 16, 2004.

The placement was performed by conversion of the previously placed shares of the same category to shares of greater par value:

• one common share of RUR 0.3 par was converted into one common share of RUR 3 par of the same category;
• one preferred share of RUR 0.3 par was converted into one preferred share of RUR 3 par of the same category.

The volume and percentage (of the total volume of securities in the issue) of the actually placed common stock of the issue totaled 1 578 006 833 pcs, 100%. The volume and percentage (of the total volume of securities in the issue) of the actually placed preferred stock of the issue totaled 525 992 822 pcs, 100%.

According to the stock issue resolution, the date of the stock placement is the 15th (fifteenth) working day from the date of the state registration of the securities issue, i.e. January 14, 2005. Therefore, the issue's obligation to the securities holders has been completed in full.

CenterTelecom is a leading fixed communications company providing the entire range of telecommunication services in the Central Federal District where over 20 % of the population of Russia resides. CenterTelecom offers the full range of telecommunication services, including telephony service, the Internet, IP telephony, data communications, CATV, wired and VHF broadcasting. The company actively develops modern multiservice and SDH networks as well as new radio access systems. The Company trades on RTS (ESMO, ESMOP), Moscow Interbank Currency Exchange (CTEL, CTELP) and has ADR Level 1 common stock program (CRMUY).