The fifth bond issue* of OJSC North-West Telecom with volume RUR 3 billion will be floated on May 27, 2008 . A decision on that was made by the Board of Directors of the Company on May 19, 2008.

Series 05 documentary non-convertible interest-bearing bonds payable to bearer, with obligatory centralized care have the following parameters:

• Total number of bonds of the issue: 3,000,000 (three million), with the face value of RUR 1,000 (one thousand) each;
• State Registration No. of the issue: 4-05-00119-A of 23.10.2007);
• The bonds circulation period is 5 years, early retirement of the bonds is possible, if OJSC North-West Telecom wishes so, on any of the dates of bonds coupon yield payment in the period from the 728th till the 1729 th day from the starting date of bonds floatation.

A two-years' offer is provided for the issue, the price of implementing the offer is according to the face value .

The floatation price of one bond is equal to the face value and makes RUR 1,000 (one thousand) per bond.

The interest rate for the first coupon will be determined as the sum of two summands:

• MosPrime Rate** for 3 months , established on the last working day before the date of issue floatation start;
• premium to the MosPrime Rate for 3 months.

The rate for the 2nd – 20th coupons will be: MosPrime Rate plus Premium, however, no higher than the Limit Rate, which is 15%.

Like in the previous issues, stage-by-stage retirement of the bonds is planned according to the following timing:

• on the 1456th day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value ;
• on the 1638th day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value ;
• on the 1820th day from the starting date of floatation each bond will be retired partially to the amount of 50% of the face value.

The bonded loan will be floated at the MICEX Stock Exchange through public subscription.

S vyaz-Bank jointly with Raiffeisenbank will be the organizer of the new bonded loan of OJSC North-West Telecom .

* On May 14, 2008 the issue was given the A+(rus) long-term rating according to the national scale by the Fitch Ratings agency

**The MosPrime Rate is the rate of rouble loans provided to first-class financial organizations, calculated   by the National Currency Association