The explanatory note to the accounting report of the open joint-stock company "Sibirtelecom" for 2002 (стр. 8 )

The nominal cost of each share is 0.15 rubles.

The board of directors of the open joint-stock company "Sibirtelecom"took a decision to issue additional ordinary sharesitems) and priority shares (Type A)items) by converting the shares of the joined companies April 26th, 2002.

The state registration of the alterations of the charter of the company was finished on February 10th, 2003. The alterations of the charter of the company was declared to be a significant event. The company according to the disposition about accounting "Events after a reporting date" issued in July 1998 had to include this event into the accounting report (December 31st, 2002) (Article 15 of this explanatory note "Events after December 31st, 2002")

The authorized capital of the company is the authorized capital of the main company and the authorized capitals of the joined companies. The authorized capital of the company decreased because the authorized capital of the main company was increased by converting the shares of the joined companies.

The amount of the undivided profits for the last years was increased by the excess of the nominal cost of the shares of the joined companies over the nominal cost of the additional shares (the sum is 1 rubles).

7.8.2. Owned shares

The open joint-stock company "Sibirtelecom" did not issue ordinary and priority shares in 2002.

The shares of the shareholders were not bought on the date of the registration of the open joint-stock company "Sibirtelecom".

7.8.3. Distribution of profits

The planned distribution of profits of the open joint-stock company "Sibirtelecom" for 2002 will be carried out at the annual stockholders meeting in 2003

Table No 15

Sum of money thousand rubles

I. The capital before the distribution of profits for the reporting period 1. The authorized capital 2. The reserved capital 3. The additional capital 4. The profits for the last years 5. The profits for the reporting period 6. The total capital before the distribution of profits for the reporting period П. The directions of the distribution of profits for the reporting period 1. The profits to form a reserve fund 2. The profits to form a stock fund for employees of the company (if the creation of this fund is envisaged in the constituent documents 3. The profits to pay interests 4. The results of the distribution of profits for the reporting period Ш. The capital after the distribution of profits for the reporting period 1. The authorized capital 2. The reserved capital 3. The additional capital 4. The profits for the last years IV. The increase (decrease) of the capital because of the undivided profits for the reporting year

2 62 438 2 3 8 125800 125800 2 62 438 2 4 347978

The distribution of profits for the reporting period have to be approved by the annual stockholders meeting.

7.8.4.The reserved fund

The reserved fund (5% of the authorized capital is 7 thousand rubles) is created according to Article 9 of the charter of the open joint-stock company "Sibirtelecom". The reserved fund is accounted at the sum of 194070 thousand rubles now. The reserved fund is shown in the balance sheet in the following way.

The reserved fund is accounted by the main company (Page 431, Group 5 – 62438 thousand rubles).

The reserved fund is accounted at the undivided profits for the last years (Page 460, Group thousand rubles).

The reserved fund is accounted in the joined companies (131632 thousand rubles).

There are no plans to form the reserved fund from the profits for the year 2002 in 2003.

7.8.5.Intrests

The interests for the year having ended on December 31st, 2001 were approved at the meetings of the shareholders and the joined companies.

Table No 16

Name of share	Interests (Total including the joined companies) thousand rubles	Interests (the main company) thousand rubles
1	2	3
Priority shares (Type A)	91 580	24 941
Priority shares (Type B)
Ordinary shares	88 842	24 941
Total		49 882

The interests for the year 2001 are shown in the annual accounting report of the year having ended on December 31st, 2002.

The board of directors suggested paying interests in the following way.

Table No 17

Name of share	The amount of shares (items)	Interests for one share rubles	The total amount of interests rubles
1	2	3	4
Priority shares (Type A)		0,	46
Ordinary shares		0,	79
Total

The interests for 2002 are not shown in this accounting report. They will be shown as using the undivided profits for the year ending on December 31st, 2003. The undivided profits will be approved at the shareholders meetings of the company.

7.9.Credits and loans

The structure of liabilities

Table No 18

	January 1st, 2002	December 31st, 2002
Short-term liabilities	Long-term liabilities
(Page 610, Page 621 from Form No 1)	(Page 510, Page 520 from Form No 1)	Short-term liabilities	Long-term liabilities
Total including the data of the joined companies	The main company	Total including the data of the joined companies	The main company	(Page 610, Page 621 from Form No 1)	(Page 590 from Form No 1)
1	2	3	4	5	6	7
Credits of banks	323524	0	308228	268361	938052	400410
Sberbank	36576		3000		466918	144399
The open joint-company "Uralocibirskiy bank"			67983	67983	30725
Bank BBL			92556	92556	38562	38562
Bank КВС			107822	107822	31214	109250
The closed joint-company "Kedr"	30989		34549		22400
Alfa-Bank	39800				67679	106695
Krosno bank	40220				0	0
The open joint-company "Promstroybank"	71046				85764
Others	104893		2318		194790	1504
Commodity credits including per cents	717174	143414	652456	35837	1130746	388769
Alkatel Bell	57710	57710	51212	30577	76458	16351
Ericsson Nicola Tecla			118436		23988	40340
IBC Holding (CY) Ltd			18079			0
Urtel S. А.			17588			3973
Alfa-Bank			223086		30284	27417
Simens	5192	5192	7499			0
Iskra TEL	17356	16742	5260	5260	9143
RTK-Leasing			6		119857	274306
			0
The open joint-company "Rostelecom"	105284	18278			186714
Others	531632	45492	211290	0	684302	26382
Loan on debentures	0	0	0		0	0
Loans from companies Groups			1742		357	1021
The open joint-company "Sviazinvest"
The open joint-company "Investment company of communication"			1742		357	1021
Credits from regional administrations			28035			27555
Administration of Aginsk autonomous region			12025			12247
Others			16010			15308
Issued bills of credit Page 622	47261	6			87928
Other loans	42095		90413		167745	109119
GUTA-BANK	8950				64800
Kuzbassugolbank	15709				63380
Germes			81671			65052
TSER, Ltd			8742			3262
Other loans	17436				39565	40805
Total of credits and loans except of commodity credits (Page 610, Page 590 from Form No 1)	365619	0	428418	268361	1106154	538105
Total of commodity credits	717174	143414	652456	35837	1130746	388769
Total of liabilities	1082793	143414	1080874	304198	2236900	926874

The company had loans and credits from Vnesheconombank on December 31st, 2 rubles). According to the credit contract these loans and credits depend on the rate of Euro, and they will be converted and paid in rubles. These loans and credits were not revalued December 31st, 2002 because they were in conventional units. The sum of loans and credits revalued by using the rate of Euro of Central Bank on December 31st, 2002 is rubles.