Vladivostok, November 17, 2004- Open Joint Stock Company "Far East Telecommunications Company" (MICEX: Äàëüñâç1îá, RU0008167713), the leader on the telecommunications market of the Russian Far East, today announces about the payment of the 2nd coupon of 72,3 million rubles on the issued bond loan of 1 billion rubles.

FETEC paid 72,3 rubles per bond with coupon rate 14,5%.

Judging by the results of the first trading year of FETEC on the secondary security market the total amount of deals made 5,88 mln.rubles (OTC - 1,73 million rubles, REPO - 3,82 million rubles). Totally 561 deals were made (OTC - 125, REPO - 174).

Maximum price reached 113% of nominal. During the first trading year (2 coupons periods) effective yield on bonds fluctuated from 8,4% to 13,7%.

Reference:

State registration number of issue is 4-09-30166-F, date of state registration is July 18, 2003. Volume of issue is 1 million bonds with the face-value 1000 rubles per unit. The maturity period consists of 6 coupon periods. The coupon is fixed. The interest is 14,5% per year in the first two coupon periods, in the 3rd and the 4th coupon periods it is 15% per year and 13% in the 5th and 6th periods.

FETEC's documentary unconverted with the obligatory central deposit series D1 bonds have were sold at the Moscow Inter Bank Currency Exchange (MICEX) in November 2003. The selling was made through the public offering. The market value of bounds was 100% of its face value.

FETEC also announced the repurchase plan, according to which the shareholders have a right to require FETEC to buy the bonds by its face value in term, which starts from the 7th day before the date of maturity of the 4th coupon period and ends at the date of maturity of the 4th coupon period (November 16, 2005).

Investment bank "Trust" is the organizer, under-writer and payment agent of the issue. Co-under-writers are the "Soyuz" bank, Guta-Bank, Veb-Invest Bank, Moscommerzbank and Moscow International Bank "Renaissance Capital". Financial consultant is the Investment Company "AVK".

To receive more information, please, contact the Investor Relation Department: tel. +7(4232) 208-500, ext. 1306 or e-mail to: ir@dsv.ru;

About the company:Open Joint Stock Company "Far East Telecommunications Company" (Dalsvyaz in Russia) is the leader on the telecommunications market on the Russian Far East. Dalsvyaz owns 87% of local, 81% of long-distance and international communications, 72% of Inter-net market, 100% of cellular market in the region of Magadan and 50% of cellular market in Kamchatka. Dalsvyaz OJSC is the subsidiary of Svyazinvest OJSC, which holds 38% of company's capital. Moreover an RTS and MICEX, COMPANY share circulates on the over the counter market of USA (ADR of the 1st level). Company's official web site is www.dsv.ru