The annual general shareholders meeting approved the Company's annual financial statement, its annual accounting reports, including the profit and loss statement (profit and loss accounts), as well as the allocation of profits and losses of the Company based on its 2002 financial performance.   

In his presentation, the director general of STC, Vladimir Gorbachev pointed out that the Company's continuing strong performance is confirmed by its efficiency indicators.  

He also made reference to execution of the Company's investment program and the significant growth of its subscriber base, as well as the introduction of new high-tech methods, which enabled STC to generate over RUR 10.5 in revenue in 2002, which is up 28% compared with the 2001.  In 2002 over 374,000 new lines were entered into service in Southern Russia.  Net profit exceeded RUR 1.561 billion, which is nearly 60% more than in 2001.  

The shareholders meetings elected the new 10-member composition of the Company's Board of Directors.  The 5-member Audit Committee of STC was also elected.  The new composition of the Board of Directors is as follows:  

1.      Stanislav Petrosovich Avdiyants - executive director - director of Svyazinvest's Economics and Tariff Policy Department;

2.       Vadim Yevgenievich Belov - deputy director general of OJSC Svyazinvest

3.       Mikhail Borosovich Vasilyev - head of the representative office of NSH Advisors, Inc.

4.      Vladimir Lukich Gorbachev - director general of STC;

5.       Alexander Leonidovich Merzlenko - director of the investment banking services department of Renaissance Capital;

6.       Georgy Alekseyevich Romsky - deputy director general of Svyazinvest;

7.       Stanislav Nikolayevich Panchenko - deputy deputy director general of Svyazinvest;

8.       Irina Petrovna Ukhina - deputy director of the corporate governance department of Svyazinvest;

9.       Andrey Anatolyevich Shepilov - head of the shareholders market committee division of the department of shareholders capital of Svyazinvest;

10.   Igor Vilgelmovich Volkovysky - head of the organizational directorate of the office of presidential envoys to the Southern Federal District;

11.    Denis Viktorovich Kulikov - expert of the Association for Protection of Investors' Rights. 

The Audit Committee of the Company was elected as follows:  

1.      Natalya Vladimirovna Boyarskikh - chief accountant of Kubanelektrosvyaz, a branch of STC;

2.      Lyubov Alexandrovna Greseva - Leading expert of the department of internal audit and economic analysis of Svyazinvest;

3.       Vladimir Vladimirovich Kozin - director of the department of direct investments and property of Svyazinvest;

4.     Irina Viktorovna Prokofieva - director of the department of internal audit and economic analysis of Svyazinvest;   

5.      Kirill Viktorovich Frolov - chief expert of the department of internal audit and economic analysis of Svyazinvest. 

Ernst & Young Vneshaudit was approved as the Company's external auditor.  

The shareholders meeting adopted the decision to pay out RUR 0.0812 per common share and RUR 0.1607 per preferred share.