On June 1, 2010 OJSC North-West Telecom completed fulfilling its obligations related to repurchase of its Series 05 bonds.

In accordance with the Resolution on the Issue the bond holders might present their bonds for repurchase in the period from May 18 till May 25, 2010. The bonds purchase and sale transactions were made on June 1st at the MICEX stock exchange at a price amounting to 100% of their par value.

1,599,563 bonds were presented for repayment, which made about 53% of the total issue volume. The price of the bonds presented by their holders for repurchase, including the accrued coupon return was RUR 1,601,500,000. All the obligations provided for in the N.W.Telecom offer were fulfilled in due time and completely.

KIT Finance was the bonds managing underwriter selected in an open building held by N.W.Telecom in April 2010.

The annual interest rate for the 9th coupon period is 6.49%.

The fulfillment by OJSC North-West Telecom of its obligations related to the bonds repurchase has confirmed once again the Company’s reputation as a reliable borrower justifying the investors’ confidence in its securities.

The fifth-issue bonds are interest-bearing documentary bearer bonds with mandatory central storage, issue 05 (state registration number 4-05-00119- Ŕ of October 23, 2007) placed at the Stock Exchange Moscow Interbank Currency Exchange on May 27, 2008. The volume of the issue is RUR3 billion; the number of bonds is 3 million with the par value of RUR1,000. The maturity period is 5 years. The bonds’ coupon is paid on the quarterly basis. The bonds are included in the RF Central Bank’s Pawn List, are accepted by the Bank of Russia as collateral for direct REPO deals and are included in the quotation list A1 of the Moscow Interbank Currency Exchange.