On February 20, 2009 OJSC North-West Telecom set the interest rate for the fourth coupon of the North-West Telecom bonds series 05 at 15% per annum.

The method for determining the coupon rates is established by the Decision on the Issue of Securities. The coupon rate for the 5 th issue is floating . It is revised on the quarterly basis and is determined as the sum of the 3-month MosPrime rate* set on the last day of each coupon period and the premium determined by auction at the time of placement of the issue. The premium is fixed for the whole maturity period of the bonds and is equal to 212 basis points. To reduce the risk of interest rates rise, the Decision on the Issue of Securities provides a limitation on the maximum coupon rate. Thus, the coupon interest rates may not exceed the maximum interest rate set at 15% per annum.

As the MosPrime rate used for determining the interest rate for the 4th coupon was equal to 24.17% per annum at February 20, 2009, the interest rate for the 4th coupon was set at the maximum level of 15% per annum.

The fifth-issue bonds are interest-bearing documentary bearer securities with mandatory central storage, series 05 (state registration number 4-05-00119- À of October 23, 2007), placed at the Moscow Interbank Currency Exchange on May 27, 2008. The volume of the issue is 3 billion rubles, the number of bonds is 3 million pieces with the par value of 1 thousand rubles. The maturity period is 5 years. The coupon income on the bonds is paid on the quarterly basis.

*The MosPrime Rate is the rate at which ruble credits are provided to first-class financial organizations. The rate is calculated by the National Currency Association.