Moscow, March 3, 2010. CenterTelecom OJSC has effected payment in the sum of RUB139,110,000  under the seventh coupon of its series 5 interest-bearing documentary non-convertible bearer bonds.

The seventh coupon's rate was 9.3% per annum. The value of the interest paid per bond was RUB46.37. Total sum of payments under series 5 bond (including amortization payments in the amount of 10% of par value) reached RUB439,110,000.

Three million series 5 bonds with RUB1,000 par value each were placed by way of public offering on the MICEX Stock Exchange on September 5, 2006. The placement price was established in accordance with issuing documents and reached 100% of par value. The interest rate on the first coupon was set at 8.09% per annum as a result of an auction held on the day of placement. Interest rates for the second, third and fourth coupons were equal to the rate on the first coupon. Interest rate for the fifth coupon amounted to 9.3% per annum. Interest rates for the sixth, seventh, eighth, ninth and tenth coupons were equal to the rate on the fifth coupon.

The bonds are to be redeemed in the amount of 10% of the nominal value on the 1,274th day after the placement date (March 2, 2010), 20% of the nominal value on the 1,456th day after the placement date (Aug. 31, 2010), 30% of the nominal value on the 1,638th day after the placement date (March 1, 2011), and 40% of the nominal value on the 1,820th day after the placement date (Aug. 30, 2011).