Changes in the reporting support the company's general strategy aimed at increasing its financial transparency and responsibility to shareholders and investors.

Additional balance sheet entry 145 "Deferred tax assets", 515 "Deferred tax liabilities" as well as adjustments to the beginning retained earnings balance for previous years are among the distinctive features of the published reporting.

The adjusted beginning balance resulted in the reduction of the Company's actual net income as compared to projected from about RUR 2,157 million to RUR 1,937 million due to beginning of reflecting deferred taxes balance and the corresponding increase in retained earnings for previous years.

This approach supported by the auditor resulted in adjustment to previous years' retained earnings (RUR 1,247 million as of the beginning of the year, RUR 51,488 million as of the year-end) as well as the net income of RUR 1,937 million.

The company's final reporting to RAS is available in the Annual Reports section on the website. US GAAP reporting will be published right after the shareholder meeting which will take place on June 19, 2004.