FEDERAL COMMISSION FOR THE SECURITIES MARKET

For immediate distribution 15 October 2003

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

FCSM OF RUSSIA CHAIRMAN UPDATES JAPAN'S BUSINESS AND ACADEMIC COMMUNITY ON INCREASED FOREIGN INVESTMENT IN THE RUSSIAN STOCK MARKET

Tokyo, 15 October 2003 — During a visit to Japan, FCSM of Russia Chairman Igor Kostikov met with leaders of the Financial Services Agency, the Japanese stock market regulator, the Tokyo stock exchange and investment companies to discuss the FCSM of Russia's experience to strengthen investor protections through legislation, greater transparency and better corporate governance. Chairman Kostikov also highlighted investment opportunities in Russia's high-performance securities markets.

"Investor confidence in the Russian securities markets is evident through the growing number of both domestic investors and international investors," said Chairman Kostikov. "Over the past few years the Russian government has implemented a number of reforms to create a favorable investment climate in Russia. As a result, Moody's Investor Service, a rating agency, upgraded Russia's rating to investment grade last week. The FCSM of Russia has also led initiatives to create a free and fair stock market, promote corporate governance and increase issuer transparency."

The FCSM of Russia Chairman met with his Japanese regulatory counterparts to discuss common issues facing both countries, such as improving corporate governance, information disclosure standards, listing procedures and the legal frameworks of the stock exchanges in both countries.

"The Russian and Japanese markets are currently in different phases of development. The Russian market is rather young, while Japan's has a long history. Regardless, both markets face similar regulatory issues, such as compliance with the norms of corporate governance, adoption of international accounting standards and efforts to prevent fraud on the stock markets. Discussions of these issues with my Japanese colleagues and sustained cooperation will have a positive effect on the stock markets of both countries," Kostikov noted at the meeting.

Chairman Kostikov discussed the important role stock exchanges play with officials at the Tokyo Stock Exchange. The two sides agreed that stock exchanges have an obligation to act as social institutions by securing investor interests. Kostikov noted, "The Tokyo stock exchange has already taken on such a role. Its officials realize the stock exchange's responsibilities to society as an entity, which oversees the activities of issuers and professional market participants. Russian stock exchanges are in an early stage of this transition. They still have to implement measures to effectively protect investor rights and they must also enhance internal corporate governance practices and transparency, which are fundamental to efficient capital markets. Investors want stock exchanges to perform their social duties on the securities market," he added.

Sadao Yoshino, Senior Vice President of the Tokyo Stock Exchange, said: "We have witnessed how the Russian securities market has improved over the last three years, offering greater transparency and enhanced corporate governance. We believe that the Russian securities market will increasingly be on the radar screens of investors looking for good investment opportunities."

In a lecture for graduate business students and faculty members at Waseda University, Chairman Kostikov discussed the new regulatory regime of the Russian stock market, current problems facing the market, and potential solutions that might also stimulate economic growth.

Chairman Kostikov next travels to Seoul, South Korea, to participate in the 28th meeting of the International Organization of Securities Commissions (IOSCO) and to meet with officials at the Korean Stock Exchange, investors and news media.