On October 04, 2006 ACB Sviaz-Bank, acting as payment agent for the Series 02 bonds of North-West Telecom OJSC, executed the redemption 30% of the bonds’ par value of the second issue of bonds of North-West Telecom OJSC.

In accordance with the Issue Resolution, bond redemption in three installments was approved:

·  30% of the bonds’ par value on the 1092nd day from the start of bond placement,

·  30% of the bonds’ par value on the 1074th day from the start of bond placement,

·  40% of the par value on the 1456th day from the start of bond placement.

The first part was redeemed within the approved date on the 1092nd day from the start of bond placement .

The total sum allocated to redemption of the first 30% of the bonds’ par value was 450 million rubles.

The redemption of 30% of principal debt indicates full and timely meeting by North-West Telecom of its liabilities not only in terms of current debt service but also in terms of repayment of invested amounts, and describes the company as a reliable and responsible borrower.