Q1 2004 sales reached RUR 3,675 million from RUR 2,855 million in Q1 2003. Growth totaled 28.8% or RUR 820.8 million.

"Sales growth indicates that we have chosen the correct business development strategy. New rates provided 47% of additional revenue, the rest was generated exclusively through our growth," - said MGTS general director Mikhail Smirnov.

In comparison with Q4 2003 sales grew 6.9 % or by RUR 237,319 million.

MGTS CAPEX in Q1 2004 totaled RUR 943 million, a 2.5 times y-o-y increase.

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PJSC Moscow City Telephone Network is one of the biggest not only in Russia, but among the local wire telecommunications companies in Europe too. The Company's continual priority task is to provide quality telephone communication accessible to the millions of the Russia's capital-city inhabitants. The MGTS personnel of 20 000 persons supply services to about 4.2 million subscribers. The telephone density in Moscow conforms to the European standards - over 50 MGTS telephones per 100 metropolitan residents. There are about 600 MGTS telephone exchanges in operation, and their number increases year by. There are presently 18 000 pay stations available at the Company's public payphone network. To date, the MGTS share amounts to 80% in the Moscow fixed telecommunications market. The dynamic development of the Company is noted for its stable economic situation, prescheduled on-going income growth rate, and for the amount of provided services on the upgrade. The Central Office of PJSC MGTS is located in Moscow at 12, bdg. 3, Petrovskiy Boulevard, Moscow, Russia. The Company's Internet address is www.mgts.ru.

For further details, please approach the Department of Information and Public Relations - PJSC MGTS.
Tel: +7 (095) 950 0623, fax: +7 (095) 950 0622,
E-mail: pressa@mgts.ru