On January 11, 2007, the report on the results of the issue of North-West Telecom’s Series 04 non-convertible interest-bearing documentary bearer bonds for mandatory centralized storage (State Registration No. 4-04-00119-? of October 31, 2006) was registered by resolution of the RF Federal Financial Markets Service.

2 million securities of the par value of RUR 1,000 were placed at the MICE stock exchange on December 14, 2006. The issue was successfully placed in full in one day. The bonds’ floatation on the secondary exchange market will be arranged soonest.

20 quarterly coupons will be paid on the issue. The annual interest rate for the 1st coupon is 8.1% by the exchange auction results. The rates for other coupons are equal to the 1st coupon’s rate.

The bond floatation period will be 5 years, allowing for premature repayment on the 728th day from the placement starting date, if so desired by NWT. The premature repayment premium is RUR 20 per bond. The first coupon will be paid on March 15, 2007.

The 4th issue bond repayment is intended to be by installments, to the following schedule:

·  on the 1092nd day from the placement starting date, repayment of 25% of the bonds’ par value,

·  on the 1456th day, repayment of 25% of the bonds’ par value,

·  on the 1820th day, repayment of 50% of the bonds’ par value.

ING BANK (EURASIA) CJSC and Svyaz-Bank OJSC were the issue’s joint managers. Russian Industrial Bank was the issue management consultant of NWT. Co-underwriters: Soyuz ACB OJSC, Savings Bank of Russia OJSC, Novicombank ACB CJSC, Nomos-Bank CJSC, and Standard Bank.