On 23rd October the Federal Service for Financial Markets of Russia registered the fifth issue of interest-bearing document ary payable-to-bearer bonds of OJSC North-West Telecom . The loan has been assigned the state registration No. 4-05-00119-A. An Offering Circular was registered by the state simultaneously with the registration of the securities issue.

The total volume of the registered issue of OJSC N.W.Telecom is 3,000,000,000 (three billion) roubles. The bonds circulation period is 5 years, early retirement of the bonds is possible, if the Company wishes so, on any of the dates of bonds coupon yield payment in the period from the 728th till the 1729 th day from the starting date of bonds floatation. The amount of the premium to be paid in case of early retirement will be 2 roubles 50 kopecks per bond.

The floatation price of one bond is equal to the face value and makes 1,000 (one thousand) roubles per bond. The interest rate for the first coupon will be determined as the sum of two summands:

• MosPrime Rate for 3 months , established on the last working day before the date of issue floatation start;
• premium to the MosPrime Rate for 3 months.

The rate for the 2nd – 20th coupons will be: MosPrime Rate plus Premium, however, no higher than the Limit Rate that will be set by the Company immediately before the date of floatation start.

Like with the previous issues, stage-by-stage retirement of the bonds is planned according to the following timing:

• on the 1456th day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value ;
• on the 1638th day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value ;
• on the 1820th day from the starting date of floatation each bond will be retired partially to the amount of 50% of the face value.

No preferential right of acquiring securities is provided for. The bonds will be floated through public subscription.

The Decision on the Securities Issue and the Offering Circular will be published at OJSC N.W. Telecom 's corporate site in the section To Investors and Shareholders

Copies of the said document s may be obtained at the following addresses:

• OJSC N.W.Telecom: 14/26, ul. Gorokhovaya (26, ul. Bolshaya Morskaya) St. Petersburg, tel.: (812) 719-92-35   Fax: (812) 719-94-94;
• OJSC AKB Svyaz-Bank: 7, ul. Tverskaya, Moscow, tel:(495) 771-32-60   Fax: (495) 975-24-66.

OJSC Bank Sankt-Peterburgis OJSC N.W. Telecom's financial counselor in the organization of the issue. OJSC AKB S vyaz-Bankis the organizer of the loan.