For immediate distribution February 4, 2003

For more information: FCSM of Russia Press Service (095) 937-2174

FCSM OF RUSSIA CHAIRMAN VISITS KOREA

FCSM of Russia Chairman Addresses Securities Markets Challenges Worldwide with Regulators, Exchange Officials and Investors in Korea

17 October 2003, Seoul, Korea — During an official visit to Korea, FCSM of Russia Chairman Igor Kostikov participated in a meeting of the presidential committee within the framework of the 28th annual conference of the International Organization of Securities Commission (IOSCO). Chairman Kostikov noted that efforts to enhance investor confidence and increase market growth in Russia are succeeding.

"As of early October, Russian market value exceeded a record-high $200 billion, 2.5-times the figure for early 2002, but I believe this is not a limit," the FCSM of Russia Chairman said. "Last week Moody's Investor Services, a rating agency, lifted Russia's rating to investment grade for the first time in the post-Soviet period. This upgrade shows that confidence in the Russian economy and government has increased and will help attract more investors, including conservative ones."

Chairman Kostikov noted, "The FCSM of Russia has recently developed a number of initiatives to enhance the transparency and fairness of the Russian stock market. On September 22 new Securities Issue Standards based on IOSCO recommendations and regulations for information disclosure by issuers became effective. The new standards are based on efficiency, reliability and information quality and also provide for mechanisms to prevent issuing fraud and the usage of insider information."

There is a positive cause and effect relationship in the Russian securities market between market participants increasingly embracing transparency, good corporate governance practices and ethical behaviors and a stable and high-performing securities market, continued Chairman Kostikov.

Chairman Kostikov met with the Senior Vice President of the Korean Stock Exchange to discuss common issues of concern, including issuing procedures, demutualization, market participant regulation and standards for information disclosure. Chairman Kostikov and Yung Joo Kang agreed to continue their dialogue and cooperation through information sharing and future meetings in Moscow and Seoul.

Chairman Kostikov spoke to the membership of the Korean Manufacturing Association about how Russia has enhanced both domestic and foreign investor confidence by implementing a strong but fair regulatory climate and creating incentives for market participants and companies to embrace good corporate governance practices, transparency and shareholders' rights.

In meetings with Korean institutional investors and the news media, Chairman Kostikov provided briefings on past and recent efforts by the FCSM of Russia to strengthen investor protections and to discuss perceptions, concerns and opportunities offered by the Russian securities market.

IOSCO is a worldwide forum for securities regulators from more than 100 jurisdictions based in Madrid, Spain. IOSCO promotes cooperation and high standards of regulation in order to maintain fair, efficient and sound markets.