The period for fulfilling the offer for the second issue of OJSC North-West Telecom bonds at the price of 100% of the par value expired on October 12, 2005.

The bondholders could present the bonds for redemption from September 22 till October 5, 2005 inclusive. The period for fulfilling the offer was October 5 till October 12, 2005 inclusive, depending on the date the bonds were presented for redemption.

4 investors who used the entitlement to the offer presented for redemption 61,000 bonds, which accounted for about 4% of the total volume of issue. The value of bonds presented by their holders for redemption amounted to 61,052,930 rubles, including the accrued coupon income. All obligations provided by the OJSC NWT offer were fulfilled on time and completely.

The agent for the offer was CJSC “Russian Industrial Bank” and the offer support organizer was OJSC “KIT Finance Investment Bank”.

The coupon rate for the coupon periods remaining till the redemption (9 to 16 inclusive) is 7.5% per annum.

“The insignificant volume of bonds presented for redemption and the complete fulfillment of the offer by OJSC “North-West Telecom” are another confirmation of the company’s reputation as a reliable borrower and must further increase the investors’ confidence in the company”, said Venera Khusnutdinova, Chief Financial officer.

The OJSC NWT bonds, second issue are interest-bearing documentary bearer bonds with mandatory central storage, series 02. State registration No. 4-02-00119-?. The issue was placed at the Moscow Interbank Currency Exchange on October 8, 2003 and included 1.5 million four-year securities with the par value of 1 thousand rubles.

The first coupon rate of 14.2% per annum was determined by auction, the profit rate of bonds for the two-year offer was equal to 14.46% per annum.

16 quarterly bond coupons are payable.

Rates of coupons 1-4: 14.2% per annum (determined in the course of the auction held at the time of placement).

Rates of coupons 5-8: 13.2% per annum (determined in the course of the auction held at the time of placement).

Rates of coupons 9-16: 7.5% (set by the Board of Directors).

The bonds will be redeemed in three stages: on the 1092nd ? 1274th day after the beginning of placement the Company will pay 30% of the par value to the bondholders and the remaining 40% of the par value will be paid to the holders on the 1456th day.