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Sibneft Transfers to RTS -1

Moscow, 24th June 1999: Sibneft is pleased to announce that following the approval of the listing department of the RTS, with effect from 1st June 1999, the ordinary shares of OAO Siberian Oil Company (Sibneft") will be upgraded from category "B" (former RTS-2) to category "A" (former RTS-1).

EUGENE SHVIDLER PRESIDENT of SIBNEFT said, "Following the successful launch of our new level -1 ADR programme last month, transferring to RTS-1 will make it still easier for investors to buy and hold Sibneft shares. We are keen to develop our shareholder base and this is another important step towards that goal."