On 3 November 2006 the Board of Directors of JSC NWT approved acquisition of 60% of shares of CJSC St Petersburg Information Company (CJSC SPiK). The company's market value had been appraised by OOO S.E.R.

CJSC SPiK is one of the largest providers of full-featured call centre services in the North West of Russia, developer of software products in the area of business telecom applications, automatic voice and CRM-systems.

The decision to acquire CJSC SPiK accords with the declared M&A strategy of NWT: the purchase of a core asset will strengthen the Company's position in the call centre market – one of the most attractive and dynamic telecom market segments. The strategy had already led to the acquisition of two internet providers from Novgorod, LLC Novgorod Datakom and Novgorod Deitakom (see the press release of 9 February 2005) and to raising the share of JSC NWT in LLC Parma Inform, one of the largest internet providers in the Komi Republic, to 100%.

The transaction value will amount to $100,000. Within the transaction there will be concluded an additional purchase of claim letter agreement to the benefit of JSC North West Telecom. The value of the purchased rights is $200,000.

The acquisition of CJSC SPiK will contribute to the widening range of the information and directory services, raise the market share of NWT in the call centre segment, reduce operating costs for those services, improve the quality of telephone customer service and of the Internet access service under the Avangard trademark. In the mid-term, the acquisition of CJSC SPiK will allow JSC NWT to dominate the telecommunications market of the North West Federal District in such a promising and profitable service segment as call centres.

Briefly about CJSC SPiK:

CJSC St Petersburg Information Company was established in 1999. Founders: JSC Telecominvest (60% of the registered capital) and CJSC AMT (40% of the registered capital). JSC NWT also owns 100% of the registered capital of CJSC AMT.

CJSC SPiK has the largest in the region full-featured outsourcing call centre, is the largest system integrator, supplier of software and hardware solutions to create call centres.

In 2005 the company's revenue amounted to 113,615 thousand roubles, net profit 11,315 thousand roubles.