Sibneft Doubles Size Of ADR Programme

Moscow, 23 May 2000; Sibneft has announced that it has doubled the size of its level-one American Depositary Receipt (ADR) programme to 40 million ADRs. The expanded programme, which has been registered with the U.S. Securities and Exchange Commission, will allow an additional 20 million ADRs to be traded on an over-the-counter basis. Each ADR represents rights to ten ordinary shares of the Company. These 20 million ADRs are in addition to the 20 million ADRs previously authorised.

Sibneft president Eugene Shvidler said: “By expanding our ADR programme, we hope to further improve the liquidity of our stock and to make Sibneft’s shares accessible to an even wider circle of investors. Taken together with the company’s ongoing initiatives in corporate governance and financial reporting, Sibneft is continuing to break new ground in Russian investor relations.”

Sibneft took the decision to increase the size of the ADR programme in response to strong demand from international investors. Over 90% of the ADRs previously authorised had been taken up in the course of the programme’s first year. The authorisation of the additional ADRs was necessary to satisfy investor demand for the immediate future.

Sibneft launched over-the-counter trading of its level-one ADR programme in the U.S. on 20th April 1999, following the successful consolidation of its Noyabrskneftegas production subsidiary. The company’s ADRs are also traded on the Frankfurt and Berlin stock exchanges. The increase in the size of the ADR programme will not affect the free float of Sibneft shares, which remains at around 12% of the Company’s equity. The remaining 88% is held by company management and employees.