On March 5th, 2002, it was decided at the session of the RF Federal Securities Board to register the issue of Series 01 document interest-bearing sight bonds of OJSC North-West Telecom. The registration documents were filed at FSB on February 15th, 2002.

Within the dates set in the Decision on Issue and in the Issue Prospectus, the Company’s Board will name the price of placement, the placement starting date, and the terms of the first irrevocable quotation. The target starting date of placement is the 1st half of April 2002.

The main parameters of the issue are: size of the issue, RR 300,000,000 at the denominational value; denominational value of one bond, RR 1,000. Bond circulation period: 730 days. The duration of the first two coupon periods is three months, and of the three next periods, six months. The issuer intends to make out irrevocable quotations throughout the bond circulation period.

According to the Decision on Issue and the Issue Prospectus, the bonds will be simultaneously placed at two stock exchanges, St. Petersburg Currency Exchange (SPCE) and Moscow Interbank Currency Exchange (MICE), by an issuing syndicate comprising:

·         AKB Moskovsky Delovoy Mir (MDM Bank) for MICE;

·         CJSC Telecombank and JSC Bank MENATEP SPb, for SPCE.

At an early date, OJSC North-West Telecom and the issuing syndicate intend to publish an informational memo on the bonded loan, and to arrange a number of meetings and presentations in St. Petersburg and Moscow inviting potential investors.

Discussing the short-term plans of the North-West Telecom, the Company’s Financial Director Igor Golikov commented:

“In civilized practice, and especially on a developed market, it is normal to ensure a credit rating for public promissory notes. Therefore the North-West Telecom intends to obtain, prior to placing, an internal credit rating for this bond issue from Standard&Poor’s, an international rating agency.”

More detailed information may be provided by the issue’s underwriters, CJSC AVK Investment Company as the financial consultant, or directly by OJSC North-West Telecom in a procedure stated in the Decision on Issue and in the Issue Prospectus.