On 09th December 2010 the National Depositary Centre CJSC acting as the payment agent for North-West Telecom’s series 04 bonds made the payment of the 16th coupon and repaid 25% of the series 04 bonds face value.

In compliance with the Decision on the Issue, partial repayment of the bonds in three stages was approved:

- 10.12.2009 - 25% of the Bonds face value;

- 09.12.2010 - 25% of the Bonds face value;

- 08.12.2011 - 50% of the Bonds face value.

The second part was fully redeemed within the established time, it was carried out at the same time with the payment of the 16th coupon yield under the series four bonds of N.W.Telecom.

The rate under the 16th coupon was 8.10% per annum, RUR 15.15 having accrued on each bond.

The total amount allocated for repayment of the principal part of the debt and the coupon yield has been RUR 530,300,000.

- RUR 500 million for repayment of 25% of the loan face value;

- RUR 30.30 million for payment of the 16th coupon.

The list of the persons authorized to receive the yield under the bonds was made as of 3rd December 2010.

The full discharge of the debt liabilities of the Company within the established time has confirmed once again the high reliability of N.W.Telecom’s securities and attractiveness of North-West Telecom as a quality borrower.

Fourth issue bonds are series 04 documentary interest-bearing bonds payable to bearer, with obligatory centralized care (state registration number 4-04-00119-A of 31st October 2006), floated at MICEX Stock Exchange on 14th December 2006. The total volume of issue is 2 billion roubles, the number of bonds is 2 million bonds with the face value of 1 thousand roubles each. The circulation period is 5 years. The bonds coupon yield is paid on a quarterly basis. The bonds are included in the Lombard List of the RF Central Bank, are accepted by the Bank of Russia as a security for direct repo operations and are included in the A1 Quoting list of the MICEX Stock Exchange.