Moscow, February 21, 2005. CenterTelecom (RTS: ESMO, ESMOP; OTC: CRMUY) reports about the payment of the 3rd coupon on Series 03 certificated non-convertible bearer bonds. The total payment on the coupon amounts to RUR 123 840 000 (one hundred and twenty-three million eight hundred and forty thousand).

The rate of the first coupon was set in the Prospectus (state registration number 4-18-00194-A as of August 01, 2003) approved by CenterTelecom Board of Directors on June 18, 2003. The bidding held at Moscow Interbank Stock Exchange set the rate of the first coupon at 12.35 % annual and was approved by the Order of the General Director. The rates of all subsequent coupons were set equal to the rate of the first coupon.

The amount payable on one coupon equals RUR 61.92 (sixty one rubles and 92 kopecks).

The issuer performed its obligation in full on March 18, 2005.

From the date of payment of the 2nd coupon (16.09.04) on Series 03 bonds to the date of payment of the 3rd coupon

• The total trading volume amounted to RUR 8.21 billion.
  • Of that amount RUR 0.74 billion worth of bonds traded on the market.
  • Block trading amounted to RUR 6.1 billion.
  • Repurchase agreement amounted to RUR 1.37 billion.
• 942 deals were closed
  • Of them market - 441
  • Block trading - 334
  • Repurchase agreement - 167
• The maximum trading price was 104.9 % of par
• Yield was ranging between 9.03 % and 11.95 % annual

Background information:

Issue state registration number - 4-18-00194-A, date of registration - August 01, 2003. Issue volume - RUR 2 billion, maturity - 1 095 days, the issue has 6 semiannual coupons, the rate on the first coupon is set at 12.35 %, the rates on coupons 2 through 6 are set equal to the rate of the first coupon.

Series 03 coupon certificated non-convertible bearer bonds were placed on September 16-17, 2003. The bonds were placed through public bidding at 100 % of par (RUR 1 000 for one bond).

AKB Moskovskii Delovoi Mir (Moscow Business World Bank) and Troika Dialog Investment Company were the issue's managers and underwriter.

The bonds are putable 1 year after the placement date, September 7, 2004. CenterTelecom Board of Directors authorized to put the bonds of the issue on September 19, 2005 with MDM Bank acting as the purchasing agent. The company redeemed 1 284 820 of 2 million bonds of this series at 101.5 % of par. Later the bonds were re-placed at the secondary market.

For more information please contact:

Director of Securities and Corporate Management Department
Elena Romskaya
+7(095)793-23-19
E-mail: esidorovich@centertelecom.ru

Head of Investors Relations Department
Andrey Kalinchenko
+7(095)793-23-40
E-mail: kalin@centertelecom.ru

Director of Information Policy Department
Yana Lavrentyeva
+7(095)793-24-86
E-mail: pr@centertelecom.ru
www.centertelecom.ru

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