On March 25, 2003 the Stock Market Section of the Moscow Inter Bank Currency Exchange is set to commence trading in document pay-to-bearer interest-yielding bonds of OJSC Volga Telecom, series VT-1 (state registration number 4-43-00137-?, dated 24.01.2003).  A report on the bond issue results was registered with the Federal Securities Commission of the Russian Federation on March 14, 2003. 

The issue will consist of 1,000,000 units with a nominal value of RUR 1,000 each.  The term to maturity will be three years.  A total of 12 coupons are to be paid out with a term of three months each.  Based on the results of the auction, the issuer set a 4.75% annual yield for the first two coupons.  In accordance with the issue prospectus the yields for the second and third coupons will be 16.5%, 15% for coupons five and six and 13% for eleven and twelve.   

The underwriters for the issue will be as follows: arranger and payment agent - MDM Bank, co-arranger - ZAO Web Invest Bank.  The project coordinator will be Svyazinvest.  Members of the underwriting syndicate will also act as market makers on the secondary market for Volga Telecom bonds.