On June 30, 2010 St. Petersburg Integrated Branch (SPIB) of N.W.Telecom started its operation. It was established on the basis of Leningrad Oblast Branch and St. Petersburg Branch. The appropriate resolution was passed by the Board of Directors of N.W.Telecom in January 2010.

The main purpose of the establishment of the integrated branch was using the inner potential to enhance the Company’s competitive advantages in providing hi-tech telecommunication services in the territory of St. Petersburg and Leningrad Oblast.

Noted V. A. Akulich, CEO of N.W.Telecom: “Today, N.W.Telecom is one of the first interregional companies where such innovative solutions improving the organizational structures and business processes are implemented. We strive to make business more transparent, and more understandable for our customers and shareholders. To improve the quality of the services we provide, we develop promising sectors, we implement new technologies, and therefore we must optimize the available resources."

According to I. V. Tambovskaya, Associate CEO / Personnel Management Director, “The changes have affected virtually all of the functional sectors. The reorganization activity in our Company’s branches are going on in absolute compliance with the requirements of the effective labor laws of the RF and local regulatory documents approved by the Company.”

The restructuring going on in N.W.Telecom will not affect the communication service contracts already signed with the users.

Viktor Ivanovich Plyachenko who previously headed St. Petersburg Branch was appointed Regional Director / Director of the St. Petersburg united branch*. Vitaly Yevgenievich Strizhkov who had served as Regional Director / Director of Leningrad Oblast Branch, reached the State pension age this March, and currently is an aide to the CEO of N.W.Telecom dealing with the branch integration matters.

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* This decision was made by the Board of Directors of JSC N.W.Telecom on March 23, 2010.