North-West Telecom’s investment priorities for 2010 were approved by Company’s Board of Directors on September 30, 2009.

In accordance with the decision adopted, at least 88% of North-West Telecom’s total investments will be distributed for financially efficient projects in 2010. 72% of them will be fast payback projects with a high financial return (IRR>25%) and a rather short payback period (less than 5 years). Most of these projects concern the development of the broadband access infrastructure, backbone network and provision of telephone lines for newly-built residences.

The investment plan will be oriented on Russian manufacturers of telecommunications equipment and software.

The implementation of the investment program will enable North-West Telecom to retain its market share in the traditional telephony as well as to continue to improve its market positions in the broadband access segment.

It should be reminded that in accordance with the tasks of improving the investment efficiency which Svyazinvest’s new team sets for NWT’s management, as early as from 2009 the priorities of NWT’s investment program will be revised so as to give preference to high return projects. Thus, over 87% of the total volume of investments were allocated to such projects this year.

Chairperson of North-West Telecom’s Board of Directors Ye. Yurchenko commented on this decision as follows: “The implementation of investment priorities will enable North-West Telecom to improve the efficiency of its investment program and ensure an acceptable revenue growth by developing new services”.