November 15, 2007

MOSCOW, November 15, 2007. Results of the study of the transparency of Russia’s largest companies in 2007: significant changes in the list of top ten leaders, conducted by international rating company Standard & Poor's with the support of the MICEX Stock Exchange, have been presented on the MICEX. According to Svetlana Borodina, Director of S&P’s Corporate Governance Ratings Service, the results of the study of 80 Russian companies with the most liquid shares show that in 2007 the level of their transparency grew by 1.1 points and amounted to 54.6%. Overall, Standard & Poor's index of transparency of Russia’s largest companies has been steadily growing, compared to 53.5% in 2006, 50% in 2005, 46% in 2004, 40% in 2003 and 34% in 2002. The following companies received the highest ratings (from 77% to 70% in descending order): Mobile TeleSistems, Golden Telecom, STS Media, VympelCom, RAO UES, Mechel, LUKoil, Evraz Group S.A., Vim-Bill-Dann Food and Rosneft.

The study focused on evaluating the degree to which Russian companies disclose important corporate information. The analysis is carried out with respect to the maximum level preferred by the "rational investor", that is, the full volume of readily available information by the most important parameters of operating activities, efficiency and the company’s corporate governance mechanisms. Attention is paid to the disclosure of the ownership structure and correlation between the level of corporate transparency and the company’s market value. Eighty largest Russian companies were studied. This year the study included an additional component: the analysis of the impact of IPOs made in international markets on the degree of disclosure.

Representatives of Standard & Poor's and the MICEX Stock Exchange gave their assessment of the main ideas, the methodology and the conclusions of the study (the presentation is attached). The material presented was discussed by members of the professional financial community and representatives of companies-issuers.

According to Alexei Rybnikov, the CEO of the MICEX Stock Exchange, the transparency of Russian companies is an important part of the existing system of corporate governance. Issuers wishing to have their securities listed on the MICEX Stock Exchange must satisfy the standards of this system. The quality of corporate governance and the transparency of Russian companies-issuers are steadily growing, promoting the liquidity and the attractiveness of the Russian stock market. Today the MICEX Stock Exchange accounts for more than a half of the global volume of trading in Russian securities.

The full text of Standard & Poor's report "Study of the transparency of Russian companies in 2007» is available in the analytical system of Standard & Poor's at: www.ratingsdirect.com. The text is also posted on Standard & Poor's web site at: www.governance.standardandpoors.com and on Standard & Poor's Russian-language website at: www.standardandpoors.ru.