RTS Stock Exchange Index Calculation Methodology Changes

At its December 19th, 2003, meeting the RTS Board of Directors has approved the new method of the RTS Index Calculation that will take effect as of January 5th, 2004. The new methodology specifies criteria for selecting transactions used in Index calculation.

The revised methodology utilizes the low-volume transactions and states that these transactions should be used in calculation at execution prices between the best bid and best offer quotes. Currently the low-volume transactions at not taken into account in the RTS Index Calculation.

The new methodology also introduces new selection criteria with regards to the transactions in which one of the quotes (either a "bid" or an "ask") is missing. For example, if there is no "bid", then the transaction price will be evaluated based on the deviation from the quoted "ask" price. For shares weighing more than 1% of the total Index weight, the deviation from the "bid" price downward and from the "ask" price upward should not exceed 15%. For shares weighing less than 1% of the total Index weight, such deviation should not be exceed 25%.