On June 17, 2004 the secondary trading of OAO MGTS fourth bond issue started today in the OTC market.

On June 8, 2004 The Federal Financial Markets Service registered the report on the results of the fourth issue of OAO MGTS certificated coupon bearer bonds.

The issue with the total nominal value of RUR 1.5 billion was placed at the Moscow Interbank Currency Exchange on April 28, 2004. The bonds mature in 5 years and pay semiannual coupons at the annual rate of 10 % during the first two years. The rates of the subsequent coupons will be determined by the issuer ten days prior to the fourth coupon date. The bonds are putable at par in 2 years on April 26, 2006, the fourth coupon date.

The issue originators are the Foreign Trade Bank, Reiffeisenbank Austria and The Moscow Bank for Reconstruction and Development. The Moscow Bank for Reconstruction and Development is issue's underwriter. The Federal Fund Corporation is the issue's financial adviser.

----------------------------------------------------

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