1. General provisions
1.1. The present Methodology of Calculation of the MICEX10 Index (the Methodology) determines the procedure of calculation of the MICEX10 Index (the Index).

1.2. For the purposes of the present Methodology, we apply the terms and definitions used in the MICEX internal documents, regulating trading in securities, as well as the term "the index calculation base", which means "the list of securities taken into account when calculating the Index"

1.3. The terms which are not specially defined in point 1.1 of the present Methodology are used in meanings accepted in laws, normative acts of the Federal executive agency supervising the securities market and other normative acts of the Russian Federation.

1.4. The present Methodology is adopted by the MICEX Directorate and comes into force on the day of its adoption, except as otherwise provided by the MICEX Directorate.

2. Formation of the index calculation base
2.1. The index calculation base is comprised of 10 stocks admitted to trading on the MICEX Stock Exchange. These stocks have the largest value of the aggregate choice criterion ;calculated by the formula:

(1)

i = 1, 2,...N
N — the number of securities admitted to circulation on the MICEX SE,
 — the number of trading days on which transactions in the i-th security were carried out on the MICEX SE during the quarter,
 — the number of transactions in the i-th security carried out on the MICEX SE during the quarter,
 — the volume of trading in the i-th security on the MICEX SE during the quarter,
 — the number of participants in trading who carried out transactions in the i-th security on the MICEX SE during the quarter,
 — the maximum values of the securities choice criteria.

2.2. If several registered issues of the same security are admitted to circulation in the Section at the same time, criteria ; are calculated individually for each issue of such security and each issue is treated as a separate security.

3. Index Calculation
3.1. The Index is calculated by the formula:

(2)

 — the current value of the Index;
 — the price of the last transaction in the i-th security;
 — the price of the last transaction in the i-th security in the previous quarter;
 — correction coefficient, which is re-calculated as the index calculation base changes.

3.2. The initial value of the Index was calculated on 30 December 1997 at 18:00, Moscow Time, and is 100 points (the initial value of the correction coefficient ; = 100).

3.3. The Index is calculated each trading day. The new value of the Index is calculated when a transaction in a security, included in the index calculation base, is carried out on the MICEX SE. In this case, transactions carried out during the pre-trading period and transactions carried out during the trading session are taken into account.

4. Changing the index calculation base
4.1. The index calculation base is revised once a quarter on the first trading day of the month on completion of trading on the MICEX SE.

4.2. The unscheduled revision of the index calculation base takes place when:

• the admission of at least one security, included in the index calculation base, to circulation on the MICEX SE is terminated,
• at least one security, included in the index calculation base in the current quarter, is admitted to circulation on the MICEX SE, whose admission to circulation on the MICEX SE was terminated in the current quarter.

The unscheduled revision of the index calculation base takes place after the close of the trading session on the day preceding the admission of a security included in the index calculation base to circulation on the MICEX SE or the termination of its admission.

4.3. The revision and the unscheduled revision of the index calculation base take place in compliance with Section 2 "Formation of the index calculation base" of the present Methodology.

4.4. The correction coefficient is re-calculated when:

• the index calculation base is revised,
• the unscheduled revision of the index calculation base takes place,
• a corporate event takes place, which concerns at least one security included in the index calculation base, if this event changes the number of securities in circulation.

The correction coefficient is re-calculated by the formula:

(3)

- Index value at the close of the trading session, calculated on the basis of the old index calculation base,
- Index value at the close of the trading session, calculated on the basis of the new index calculation base.

For the purposes of calculating the correction coefficient as a result of the occurrence of a corporate event, which has respect to at least one security included in the index calculation base and changes the number of securities in circulation, when calculating the Index on the basis of the new index calculation base ; , the price of the latest transaction in this security in the preceding quarterе ; changes inversely to the change of the number of securities in circulation, which resulted from the occurrence of the given corporate event.

5. Release of information
5.1. Information on the changes of the Index is released in the MICEX Trading System and published on the web site of the MICEX and the MICEX SE

MICEX10 Calculation Parameters in the 1st Quarter of 2005

Index calculation base	Security Code	P0
LUKoil - c.s.	LKOH	833,020
Mosenergo - c.s.	MSNG	4,100
Norilsk Nickel GMK 5 - c.s.	RU14GMKN0507	1 507,000
RAO UES - c.s.	EESR	7,745
Rostelecom - c.s.	RTKM	50,260
Sberbank - c.s.	RU0009029540	13 910,050
Surgutneftegaz - c.s.	SNGS	20,520
Surgutneftegaz - p.s.	SNGSP	15,100
Uralsvyazinform - c.s.	URSI	1,013
YUKOS - c.s.	YUKO	19,120

Correction coefficient К=1067.7612