The report on the results of issue of NWT’s non-convertible documentary interest-bearing bearer bonds series 05 with mandatory central storage (state registration number 4-05-00119-À of October 23, 2007) was registered by the Decision of the RF Federal Financial Markets Service on June 19, 2008.

3 million bonds with the par value of 1 thousand rubles were placed by open subscription at the Moscow Interbank Currency Exchange on May 27, 2008. The issue was successfully placed in full during one day. The circulation of bonds on the secondary exchange market will be organized in a short time.

According to the conditions of the bond issue, 20 quarterly coupons are to be paid. The first coupon will be paid on August 26, 2008. According to the exchange auction on the placement day, the rate of the first coupon is 8.40% per annum. The premium for the MosPrime rate for the whole period of bond circulation is fixed at 212 basis points. The rates of coupons 2-20 will be determined as the sum of the three-month MosPrime rate set on the last day of each coupon period and the premium determined by auction. At the same time, the coupon rate must not exceed the maximum interest rate set at 15% per annum.

The bond circulation period is 5 years with the option of early bond redemption at the discretion of OJSC NWT at any coupon income payment date from the 728th to the 1729th (inclusive) day from the commencement date of the bond placement. The conditions of the bond issue provide for a 2-year offer with the price equal to the par value.

As in the case of previous issues, the bonds are to be redeemed in stages as follows:

• on the 1456th day after the commencement date of the bond placement, each bond is partially redeemed for the amount of 25% of the par value;
• on the 1638th day after the commencement date of the bond placement, each bond is partially redeemed for the amount of 25% of the par value;
• on the 1820th day after the commencement date of the bond placement, each bond is partially redeemed for the amount of 50% of the par value.

The organizers of the bond loan are Svyaz-Bank and Raiffeisenbank. The co-organizers are Dresdner Bank, Absolut Bank, ING Bank (Eurasia), Novicombank, OJSC Petrokommerz Bank. The underwriters are Kommerzbank (Eurasia), Alfa-Bank, BFA, Capital Investment Company, Region Group, Sberbank, TransCreditBank. The co-underwriters are Otkrytiye Financial Company, UniCredit Bank, Ak Bars Bank, Transcapitalbank, Uralsib Financial Company, Russ-Invest Investment Company.

At present, 2 bond loans of OJSC North-West Telecom (series 03 and 04) for a total of 5 billion rubles are in circulation. All bond issues of the Company are included in the Pawn List of the Central Bank of Russia, are accepted by the Bank of Russia as security for direct REPO transactions and are included in the quotation list À1.