Sibneft Shareholders to Approve Interim Dividends

Moscow, July 25, 2003. Sibneft will hold an extraordinary shareholder meeting on September 15, 2003 to approve an interim dividend payment, in accordance with a decision taken today by the company’s board of directors. The record date for shareholders eligible to participate in the meeting and receive interim dividends is July 31, 2003.

Shareholders will be asked to approve the board’s recommendation that Sibneft pay dividends, based on operating results for the first half of 2003, in the amount of 30,533,969,675 rubles ($1.006 billion). The sum is equal to 6.44 rubles ($0.21) per share.

“The payment of interim dividends for the first half of this year is an extension of our philosophy of distributing profits to shareholders,” said Sibneft president Eugene Shvidler. “Sibneft strives to provide maximum returns for shareholders, after setting aside funding for its investment program and financial obligations.”

Sibneft paid dividends of $50 million in the year 2000 and $938 million in 2001. In May of this year, shareholders approved dividends based on 2002 annual results of $1.09 billion, the largest dividend payout in Russian corporate history.