On March 2, 2010 the Fitch Ratings agency raised the international long-term credit rating (issuer default rating) of N.W.Telecom from the ÂÂ- level to BB, and its national long-term credit rating, from À+ (rus) to ÀÀ- (rus), with Outlook Stable assigned to the ratings. The Company’s short-term rating in foreign currency is confirmed at the “B” level.

The improvement of N.W.Telecom’s credit ratings is attributable primarily to the growing liquidity and lower refinancing risks, and to improved operating and financial ratios of the Company under the economic recession.

The rating agency’s analysts indicate that N.W.Telecom increased its revenue and rate of return in 2009, enhanced its market position on the broadband Internet access market as the most competing and promising segment, and a positive free cash flow by the rend of the year. On the whole, the analysts of the Fitch rating agency expect that in the medium-term future, N.W.Telecom will retain strong control over costs, which will support the Company’s rate of return. Refunding of moneys from the Universal Service Fund is also mentioned as a positive factor.

“This credit rating raise one step higher indicates a skillfully chosen development strategy of N.W.Telecom, which enables continuing the steady improvement of the Company’s financial and market results even in the unstable environment. For those concerned, the rating raise is another confirmation of the status of N.W.Telecom as one of the most investment-attractive companies in the telecommunication sector,” commented Vladimir Akulich, Chief Financial officer, North-West Telecom.

For more detailed information, visit the agency’s website www.fitchratings.ru

As of this day, apart from Fitch Ratings’ credit rating, N.W.Telecom has its international credit rating at the ÂÂ- level, Outlook Stable, and its national rating at ruAA- as confirmed by Standard & Poor’s rating agency in December 2009.