OREANDA-NEWS. A meeting of the board of directors of Sibirtelecom was held on May 8, 2007 at which decisions were adopted concerning issues pertaining to the annual general shareholders meeting of the company, which is scheduled for June 25, 2007.

1) The Company’s 2006 annual financial statement was preliminarily approved.

2) The AGM is recommended:

- to approve the annual financial statement, the annual accounting reports, including the P&L statement (profit and loss accounts) of the Company in fiscal 2006, and to allocate profit based on the results of 2006 business activities as follows:

• Rub 327,595,905 as dividend payments, incl.:
• Rub 0,031515 per share on preferred shares;
• Rub 0,017019 per share on common shares.
• To raise the Company’s shareholder equity by Rub 926,722,291.

- To pay out dividends in cash on preferred and common shares.  Payment is to be made according to the means specified for dividend payment in the shareholder’s application form (bank draft, postal money order or cash receivable through the Company’s cash desks).

Legal entities will be entitled to receive payment only in non-cash form.  Any and all payment expenses are to be borne by shareholders themselves.

- To determine the following ratios (percentages) in calculating the annual remuneration of BoD members elected at this AGM:

0,26% (zero point twenty six percent) of the Company’s EBITDA based on 2007 IAS accounting records;

0,78% (zero point seventy eight percent) of the Company’s net profit to be allocated as 2007 dividend.
- To appoint KPMG as the Company’s 2007 auditor.

- To approve the form and text of ballot sheets to be used at Sibirtelecom’s AGM;

- To make amendments and additions to the Charter and Statute on the Board of Directors of Sibirtelecom.

 3) The auditor’s statement on the 2006 accounting reports of Sibirtelecom, the conclusion of the Audit Committee of Sibirtelecom on the results of the Company’s financial performance, the annual accounting reports of the Company and the reliability of data contained in the Company’s annual financial statement and the annual accounting reports in 2006 were taken under advisement.

The Company’s annual financial statement proposed for approval at the AGM has been adjusted compared with the earlier unaudited financial statement, while changes in the financial results do not exceed 10% of the previous version. Audited accounting reports can be viewed at www.sibirtelecom.ru and can be forwarded to any interested persons until May 15, 2007.