Nizhny Novgorod, February 2005 On February 16, 2005 OJSC “VolgaTelecom” remitted 37 810 000 rubles to the account of paying agent - OJSC “MDM-Bank” to pay the coupon yield on the eighth coupon of paper, interest-rate bearer bonds of BT-1 series of OJSC “VolgaTelecom”. The coupon yield will be paid on February 21, 2005.

Interest rate of the coupon yield of the eighth coupon is 15% per year or 37 rubles 81 kopecks per a bond. On the whole, the total amount of payments on the eighth coupon for all issued bonds was 37 810 000 rubles.

The issue features: the amount of the Bonds issue at face value – 1 billion rubles, the quantity of the Bonds – 1 000 000 pieces, the Bonds’ face value – 1 000 rubles each, the Bonds’ circulation period – 3 years.

Twelve coupon periods of 3 months duration each are stipulated for the Bonds’ issue. The rate for 1-2 coupons is 4,75 % per year, for 3-4 coupons - 16,5 % annual, for 5-10 coupons - 15 % per year, and for 11-12 coupons - 13 % annual.

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OJSC “VolgaTelecom” is a part of “Svyazinvest” holding and is one of the biggest interregional carriers in Russia. In the framework of electric communication industry restructuring, carried out by the holding, on November 30, 2002 11 regional electric communication enterprises of the Volga Federal District were consolidated into OJSC “VolgaTelecom”.