On 03rd August 2009 the Standard & Poor's international rating agency assigned the national rating at the ruAA- level to the North-West Telecom’s sixth bond issue.

The bonds will be placement on August 5, 2009 at the MICEX stock exchange by public subscription.

The parameters of the North-West Telecom’s sixth bond issue:

Issue amount: RUR 3 billion

Bonds circulation period: 10 years

Flotation price: RUR 1,000 (face value)

Coupon interest rate: Will be indentify at the placement and will be fixed for the whole circulation period

Coupon rates from 2 through 40 are equal to the first coupon rate

Repayment:

· 30% of the face value: Eight years after the date of placement (on the 2,912th day from the flotation date),

· 30% of the face value: Nine years after the date of placement (on the 3,276th day from the flotation date),

· 40% of the face value: Ten years after the date of placement (on the 3,640th day from the flotation date.)

Provision is made for premature repayment of the bonds if so desired by N.W.Telecom (call option) in three years (1092nd day from the flotation date) or in six years (2,184th day from the flotation date.) The premium in case of premature retirement will be RUR 2.5 per bond.

The issue allows for a two-year put option, at the price of 102.5% of the bonds’ face value.

The moneys received from the bond flotation will be distributed to refinancing of the current debt and financing of the N.W.Telecom investment program in 2010.

Analysts of the agency have noted that the rating has been positively influenced by the following factors:

- Strong market positions of N.W.Telecom in the local communication segment;

- Adequate level of liquidity;

- Moderate level of the Company's debt;

- Increasing efficiency of the Company's business;

- Improvement of network quality .

ACB Svyaz-Bank is the manager of the sixth bonded debt of North-West Telecom.

More detailed information can be found at the site of Standard & Poor’s: https://www.standardandpoors.ru/.