From July 31, 2008, OJSC North-West Telecom changes the conversion rate for its Level 1 American Depositary Receipts (ADR) issued for ordinary shares. The ADR holders will receive four additional receipts per each ADR they hold at the date of the list of persons entitled to receive additional ADR.

The change of the conversion rate will not involve the exchange of ADR . The depositary bank will change the ADR conversion rate at the following dates :

• date of the list of ADR holders entitled to receive additional ADR July 24, 2008;
• date of additional ADR distribution: July 31, 2008.

The change of the rate is not the result of any corporate action in respect of the placed ordinary shares in the Company and is carried out in order to improve the ADR liquidity, because from the time the Program was launched in 2001 the prices for the base asset (ordinary shares in the Company) increased 3.5 times and therefore the ADR prices went out of the range standard for this type of securities on Western stock markets.

The depositary receipts for the Company’s shares are traded on the US off-exchange market, at the Frankfurt and Berlin Stock Exchanges.