Nizhny Novgorod, March 2005:  OJSC “VolgaTelecom” (RTS: NNSI, NNSIP) acquired 100 % of CJSC “RTCOM” shares - mobile communication operator of GSM standard, providing services on the territory of the Republic of Mordoviya.

The specified transaction was made within the terms of realization of OJSC “VolgaTelecom” cellular business development strategy, the main purpose of which is to strengthen the Company’s positions at the regional market of cellular communication by means of development of GSM-assets. In this case the acquisition of CJSC “RTCOM” will assure the presence of OJSC “VolgaTelecom” mobile business of GSM standard on the territory of the Republic of Mordoviya and will create the conditions for formation of uniform roaming space.

At present OJSC “VolgaTelecom” possesses equity shares in the charter capitals of 9 cellular operators, in five of which the Company has controlling block of stock (CJSC “Nizhny Novgorod Cellular Communication”, CJSC “Ulyanovsk –GSM”, CJSC “Orenburg-GSM”, OJSC “Tatincom –?”, CJSC “RTCOM”). In the Republic of Maryi El mobile telecommunication services are rendered directly by OJSC “VolgaTelecom” branch.

CJSC “RTCOM” was registered on February 24, 1995 by the Administration of Saransk town of the Republic of Mordoviya. The Company has licenses for the provision of cellular radiotelephone communication services in 800 MHz and 1800 MHz frequency range. 8 248 ordinary shares making up 100 % of the Charter capital were bought from CJSC “RTCOM” shareholders (among them there are legal entities and individuals).

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OJSC “VolgaTelecom” is the largest telecommunication company of the Volga region providing telephony, cellular communication, Internet and data transfer, television and radio broadcasting services.  The Company was established in 2002, when, within the terms of communication industry restructuring, 11 telecommunication operators of the Volga Federal district were consolidated into OJSC “VolgaTelecom”. The installed capacity of consolidated company - 4,7 million numbers. The Company’s shares are traded at RTS and MICEX. Since 1997 I-level American Depositary Receipts program is carried out, the specified receipts being traded at Frankfurt, Berlin stock exchanges and at the USA OTC market.