On August 4, 2009 the Fitch Ratings international rating agency assigned the long-term national rating to the planned sixth bond issue of North-West Telecom JSC at À + (rus).

The bonds will be floated on August 5, 2009 at the MICEX stock exchange by open subscription.

The parameters of the sixth bonded loan of North-West Telecom OJSC are as follows:

Volume of issue: RUR 3 billion.

Bonds maturity period: 10 years.

Floatation price: RUR 1,000 (face value).

The coupon interest rate is determined at the time of floatation and remains fixed throughout the maturity period.

The interest rates for coupons 2 to 40 (inclusive) are equal to the interest rate for coupon 1.

Repayment:

- 30% of the par value in 8 years after the floatation date (on the 2,912th day after the floatation date);

- 30% of the par value in 9 years after the floatation date (on the 3,276th day after the floatation date);

- 40% of the par value in 10 years after the floatation date (on the 3,640th day after the floatation date).

The bonds may be redeemed prematurely at NWT’s option (call option) in 3 years (on the 1,092nd day after the floatation date) or in 6 years (on the 2,184th day after the floatation date). The premium for the premature bond redemption will be 2.5 rubles per bond.

A two-year offer (put option) is available for the issue at the price of 102.5% of the par value of the bonds.

The proceeds from the bonds floatation will be used for refinancing the current debts payable and funding NWT’s investment program in 2010.

According to the agency’s analysts, this rating reflects:

- dominating market positions of NWT as a regional communications operator;

- existence of the most ramified backbone network and last-mile network in the region.

Fitch Ratings believes that the Company’s business structure must remain quite stable under the conditions of the current economic recession. Although a moderate pressure on traditional voice communications services is likely, especially in the corporate segment, a rapid growth is expected for the broadband communications, which will to a significant extent compensate lower results in other segments.

The reduction in investments in 2009 will provide the Company with a positive free cash flow and necessary financial flexibility. The analysts also point out that a considerable volume of foreign currency-denominated debt was hedged by the Company in July 2009, thus reducing NWT’s currency risks.

Standard & Poor’s assigned the 6th bonded loan of NWT JSC at ruAA-.

The organizer of the 6th bonded loan of NWT JSC is Svyaz-Bank Joint-Stock Commercial Bank OJSC.

More information is available at Fitch Ratings’ web-site https://www.fitchratings.ru/