On 20th August, 2009, by the decision of the Federal Service on Financial Markets of RF the report was registered on the results of issuing non-convertible documentary interest-bearing bonds payable to bearer with obligatory centralized storage series 06 ÎJSC «North-West Telecom» (state registration number 4-06-00119-À dd. 16th October, 2008).

3 million bonds of par value of 1 thous. RUR were distributed by public subscription on 5th August, 2009 at  MICEX stock exchange. The issue was successfully distributed in full within one day with very high demand on the part of investors. In the near future bonds’ circulation at the secondary stock exchange market will be organised.

Parameters of the sixth  bond issue of OJSC «North-West Telecom»:

Issue’s volume – 3 billion RUR.

Bonds’ circulation period – 10 years

Floatation price – 1,000 RUR (par value)

First coupon interest rate – 11.70 %

Rates from 2nd to 40th coupon – are the same as the first coupon rate

Bond redemption:

• 30% of par value 8 years after floatation (on 2,912th day after floatation date);
• 30% of par value 9 years after floatation date (on 3,276th day after floatation date);
• 40% of par value 10 years after floatation date (on 3,640th day after floatation date).

A possibility of early redemption is envisaged at the wish of OJSC «North-West Telecom» (call-îption) in 3 years (on 1,092th day after floatation date) or in 6 years (2,184th day after floatation date). The amount of premium at the early bonds’ redemption will be 2.5 RUR per one bond. A two years’ offer is envisaged for the issue (put-îption), offer’s implementation price is 102.5% of the bonds’ par value.

The issue was arranged by OJSC AKB “Svyaz-Bank”. The Lead Joint Arrangers have been : CJSC BFA, ING BANK (EURASIA) CJSC, OJSC Bank St. Petersburg, CJSC Raiffeisenbank.

The following entered the floatation syndicate as co-arrangers: ÎJSC «Sberbank of Russia», CJSC UÊ «Dostoyaniye», ÎJSC ÀÊB «ÅURIFINANCE ÌÎSNARBANK», ÎJSC «Investment Bank «Îtkrytiye», ÎJSC «VBRR», LLC IKB «Sovkombank», CJSC «GLOBEXBANK», LLC «BÊ «REGION», LLC «RONIN», ÎJSC «Uglmetbank».

The following acted as the issue’s co-underwriters: GK «Deposits’ Insurance Agency», LLC FÊ «Ìågatrustoil», ÎJSC «Promsvyazbank», ÎJSC «Rus-Bank», CJSC «CREDIT EUROPE BANK».

Standard & Poor’s rating agency has allocated 6th bond issue of OJSC «NWT» rating level « ruAA -», Fitch Ratings rating agency has allocated 6th bond issue rating level «À+ (rus)».

At the moment, 3 bond issues of OJSC “North–West Telecom” (series 03, 04 and 05) with total volume of 8 billion RUR, are in circulation. All bond issues of the Company are included into the Lombard List of the Central Bank of the RF, are accepted by the Bank of Russia as the security in direct REPO transactions and are included in A1 quotation list.