Decisions of the Board of Directors of Belon

The Board of Directors of  Belon has held its meeting. It has been made the resolutions in relation to the Company’s plans of expansion into international stock markets.

The Board of Directors has concluded that IPO need to be carried out in 2009.  Till September 1, 2008 the management of Belon has to develop the complex program of measures required for successful initial public offering of the Company's ordinary shares. It will contain proposals for involvement of an underwriter and organization of due diligence, as well as recommendations on amount of additional public offering etc.

For preparation for expansion to the international stock market, shares of Belon are scheduled to be split up. This issue will be put on the agenda of the special meeting of shareholders scheduled at August 8, 2008.

The Board of Directors has also approved the new version of the Dividend Policy Regulations. The alterations relates to the amount of funds to be allocated for distribution of dividends. Henceforth, not less than 50% of net profit of the head company will be allocated according to the Russian Accounting Standards.

Till July 20, 2008 the option programme will be developed in order to motivate the Company's management to make efforts aimed at long-term growth of stock value.

In accordance with the modern corporate governance practices, the Board of Directors has made the resolution to establish the audit committee, the corporate governance committee, the budget and investment planning committee, the committee on science and innovative technologies, human resources and remuneration committee.