Ekaterinburg – March 21, 2006 - Uralsvyazinform (RTS and MICEX: URSI/URSIP, ADR: UVYZY/UVYZYP), the leading carrier of fixed-line and mobile services in the Urals region, Russia reports on the successful placement of its 7th series bond issue worth RUR 3 bln.

Today, on 21st March 2006, Uralsvyazinform placed its 07 series ruble bond issue at MICEX. The issue worth RUR 3 bln was placed in full.

42 bids equivalent to RUR 3.507 bln were made by investors during the auction. The first coupon rate was fixed at 8.40% p.a. The effective YTM amounted to 8.58% p.a. The bonds have been placed in full during the auction.

The lead manager is ?KB “Svyaz-Bank”. Co-managers are ??? “Deutsche Bank” and ZAO AKB “Promsvyazbank”. Co-underwriters: Vneshtorgbank, Gazprombank, Impeksbank, IK Kapital, Sberbank of Russia, Soyouz Bank. ZAO “Investment company AVK” acts as financial advisor. The issue coordinator is OAO “Svyazinvest”.

Issue parameters: non-convertible interest-bearing documentary bearer bonds of 07 series. The bonds have nominal value of RUR 1,000 (one thousand) with obligatory centralized custody. The total amount is 3 000 000 (three million) making the total value of RUR 3,000,000,000 (three billion rubles). State registration number: 4-10-00175-A dated November 03, 2005. The issue documents stipulate for the partial redemption of the bonds made in 20% portions of issue par every half year beginning with 1456th day since the placement starting date. The Board of Directors has decided to provide a buyback offer for the bonds of the issue, which would open on the third working day of the seventh coupon period (March 19, 2009). The bonds are placed through a public subscription.