On 7 April 2004, JSC CenterTelecom General Director Mr. Ruben Amaryan held an Internet conference proceeded in the corporate headquarters.

The subject of the conference is "The Operational Results of JSC CenterTelecom for 2003 and 2004 Business Prospects" kindled a keen interest of analysts, representatives of investors' community, and of journalists representing central and regional mass media. The General Director of the Company answered over 30 questions on-line.

The questions may be divided into financial and economic, technical, and socio-political blocks. In particular, answering the questions pertaining to further technical development of telecommunications in the affiliate entities of CenterTelecom, Mr. Ruben Amaryan stressed that the Company would perseveringly develop its infrastructures pursuant to its consolidated business plan. At the same time, it will take into account the regional affiliate telecom development programs and marketing research results.

"A positive appraisal of the level of digitization of the CenterTelecom infrastructures countrywide and within the coverage area of the Interregional Company will be appropriate, if the latter is close to catching up with a 100% rate of such indicator, though, of course, the successes of the Company in this field are well in evidence", CenterTelecom General Director said answering the questions of a Kursk journalists.

Replying to the questions concerning the development and promotion of new communication services, CenterTelecom General Director noted a significant growth of such services sales rate in YR 2003. He also named the development of Internet as one of the Company's priority marketing strategy fields. Specifically, he associates the prospects of development and sales growth of this service with acquiring by CenterTelecom of a major private provider - JSC RTS (ROSNET). In the view of Ruben Amaryan, the demand for videotelephony, Internet and other up-to-date telecommunications services is to a wide extent presupposed by a standard of welfare of the population, the need for such service being on a steady rise.

A considerable part of questions came on the CenterTelecom web site were focused on the Company's prospective tariff and investment policies. Answering the questions, Mr. Amaryan referred to a projected growth of tariffs for local telephone interconnection service, making them an investment component part in combination with simultaneous reduction of long-distance tariffs. He also noted that a new tariff-shaping methodology was under consideration at the RF Government, which would enable to take into the utmost account both the profitability of the telecommunications workers operation and the financial interests of subscribers.

JSC CenterTelecom – Corporate Profile

Joint Stock Central Telecommunications Company (JSC CenterTelecom) is a blue-chip fixed telecommunications operator providing services in the Central Federal District, the most densely inhabited area in Russia, which population amounts to 20% of this country's total.

JSC CenterTelecom provides all types of telecommunications services, these include: telephone communication, Internet, IP-telephony, data transfer, radio and television by TV cable, and wired and VHF radio broadcasting. The Company continues the development of fiber-optic and SDH networks as well as new radio access systems.

The CenterTelecom's shares are traded within RTS (ESMO, ESMOP) and at MICEX (CTEL, CTELP). The Company also operates the First Level ADR Program for common shares (CRMUY).

The Joint Stock Central Telecommunications Company is run by a strong team of managers of many years' experience in the telecom field. In the last three years, the corporate management team succeeded in raising the sales growth rate by 116.9% and increasing the profitability indicator by 5.8 points (as against YR 2000).

The full transcript of the Internet conference >>>

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