On 30th November 2010 the Standard & Poor’s rating agency increased the national rating of OJSC North-West Telecom from ruÀÀ- to ruAA and confirmed the long-term international credit rating at the level of ÂÂ-. Besides, the rating of OJSC N.W.Telecom was taken off the CreditWatch list where it was placed in June 2010 with the developing forecast. The forecast of OJSC N.W.Telecom’s rating has been changed to “Positive”.

The removal of the rating from the CreditWatch list has taken place, as the period for the presentation of creditors’ claims as to pre-term repayment of OJSC N.W.Telecom’s obligations expired. No claim as to pre-term fulfillment of the obligations has been received by the Company, and this has put an end to experts’ apprehensions as to deterioration of OJSC N.W.Telecom’s liquidity ratios in connection with the need of quickly attracting borrowings from capital markets .

The confirmation of the rating at the BB- level shows that the analysts of the agency evaluate the liquidity level of OJSC N.W.Telecom as acceptable due to the moderate debt load and the free cash flow generated by the Company.

The following factors have a positive effect on OJSC N.W.Telecom’s rating:

- strong market positions in the traditional telephony segment;

- improve ment of business efficiency;

- moderate debt load level;

- historically reasonable financial policy.

The “ Positive” forecast implies the possibility of increasing OJSC N.W.Telecom’s credit rating, provided the Company continues improving its financial standing due to a further liquidity increase and debt load decrease.

More detailed information can be found in the full Standard & Poor’s report or on the web site of the agency.