Standard & Poor's Ratings Services said it raised a Corporate Governance Score (CGS) for OJSC North-West Telecom from 5.0 to 5.6 on November 12, 2002.

Out of five Russian companies, which were assigned a corporate governance score by Standard & Poor's, OJSC North-West Telecom is the first to pass the score reassessment procedure.

During the six months, Standard & Poor’s analysts were examining changes ongoing at the Company. A number of documents that reflect corporate governance practices and policies at OJSC North-West Telecom have been studied by Standard & Poor's experts, who have also met with Company’s executives, independent directors, auditors and shareholders.

This intensive study resulted in the increase of the Corporate Governance Score for OJSC North-West Telecom from 5.0 to 5.6.

“The highest score for the board and management structure and process component of the CGS reflects positive changes made at OJSC North-West Telecom” said Ivan Rodionov, an independent member of the Company’s Board of Directors. “This is, however, just a first step, much more should be done in the future, and this is stated in the Standard & Poor's report. First of all, it is important to accomplish changes in accounting procedures and to make the Company’s financial statements inline with international accounting standards.”

“Company’s strategy implies continued work on this and a range of other issues, targeted at enhancing reliability of information provided to shareholders and improving transparency of OJSC North-West Telecom’s financial statements. Our goal is sustained growth of the Company’s market value capitalizing on advantages of the consolidation of regional telecom operators in North-West Russia, and the Board of Directors will do all it can to achieve this aim.”

OJSC North-West Telecom plans to undergo the CGS review on a regular basis. The Company also plans a range of measures targeted at improvement of its financial management and corporate culture.

Full report of Standard & Poor's Ratings Services can be found on www.standardandpoors.ru