Moscow, July 16, 2003. A two-member joint-stock company of the Molecular Electronics Research Institute and the Mikron Plant (OAO NIIME & Mikron Plant) put its bonds on the floor of the Moscow Stock Exchange (MSE). After some bidding on the MSE, the coupon yield on the company’s second-issue bonds was nailed down at 15.0 per cent per annum. The bidders snatched up the entire issue of three million bonds for a total price of 300 million rubles at par. There was not enough bonds for all comers, though, their demand by far exceeding supply, with a total of 61 bids filed for over 360 million rubles’ worth of bonds.

This issue of interest-bearing paper bearer bonds, Series 02, from OAO NIIME & Mikron Plant was registered by the Federal Securities Market Commission on June 20, 2003 (under State Registration No. 4-02-00601-?. The securities have a maturity of 540 days. Three semiannual coupon payments are to be made under the issue terms. Bond certificates for this issue will be kept in safe custody by the National Depository Center, a centralized nonprofit partnership. The Moscow Bank for Reconstruction and Development (itself a public limited company) is acting as the arranger, underwriter and paying agent for the issue, with Bank ZENIT for a co-arranger.

OAO NIIME & Mikron Plant is the leader in the Russian microelectronics industry and the nation’s biggest developer and manufacturer of integrated microcircuits. More than 60 per cent of the microcircuits the company turns out is exported to leading electronic equipment manufacturers around the world. The Mikron plant was the first high-tech business in Russia to enter the stock market. With the backing from Moscow’s Government (which reimbursed it for some of the coupon payments it made) in 2001, OAO NIIME & Mikron Plant raised its first loan by issuing bonds for a total amount of 150 million rubles with a maturity of 18 months. Mikron met all its obligations on coupon payments and repayment of the principal in full and on time. By investing the borrowings in plant renovation plans, the business has raised the share of new products in its microcircuit output from 7 per cent to 32 per cent over the last two years.

For more details, contact:

Andrei Bliznyuk Investor Relations Department Tel: +7 095 730 1543 bliznyuk@sistema.ru

Olga Pestereva Press Office Tel + 7 095 730 1705 pestereva@sistema.ru