On June 23, 2008 the annual general meeting of the N.W.Telecom shareholders was held. The meeting was held in the form of joint attendance by the shareholders of the Company.  

In accordance with its agenda, the shareholders approved the Company’s annual report, annual accounting including profit and loss statements (income statements) of the Company, and distribution of profits (in particular, payment of dividends) and losses of the Company according to the reporting 2007 fiscal year results.

The meeting of the shareholders decided to pay a dividend by the N.W.Telecom business results in 2007:

- on preferred shares: 3.997 rubles per share;

The dividend rate growth compared to the last year will be 80% per ordinary share and 366% per preferred share. This dividend rate, a record-high one in the history of N.W.Telecom, became possible due to the sizeable net profit increase by the 2007 results attributable to the successful sale of a 15% interest in OJSC Telecominvest owned by the Company.

The dividend will be paid in cash both on preferred and ordinary shares between August 15 and December 15, 2008.

By the voting results, a Board of Directors of OJSC North-West Telecom was elected with the following persons on its list:

The Auditing Committee was elected with the follows persons on its list:

1. Vitaly Vyacheslavovich Bekin, deputy head of a division, Corporate Governance and Legal Support Department of OJSC Svyazinvest;
2. Svetlana Nikolaevna Bocharova, head of a division, Accounting, Tax and Statistical Records Department of OJSC Svyazinvest;
3. Evgeniya Sergeevna Vinokurova, head of a division, Department of Economics and Finance of OJSC Svyazinvest;
4. Anna Sergeevna Lunina, Chief Specialist, Corporate Governance and Legal Support Department of OJSC Svyazinvest;
5. Pavel Evgenievich Puchkov, Chief Specialist, Strategic Development Department of OJSC Svyazinvest;
6. Ivan Vladimirovich Topolya, Associate Chief Accountant of OJSC Svyazinvest;
7. Kirill Viktorovich Frolov, Chief of the Internal Audit Board of OJSC Svyazinvest.

Ernst & Young LLC was approved as the Company's auditor for the year 2008.  

By resolutions of the Meeting of Shareholders, the Charter, the Provisions on the Board of Directors, and the Provisions on the Auditing Committee of OJSC North-West Telecom were approved in their new versions, and the deduction rate was defined for calculation of the annual award to members of the Company’s Board of Directors elected by the resolution of the General Meeting of N.W.Telecom Shareholders of June 23, 2008.

Commenting on the results of the Annual General Meeting of the Shareholders, General Manager of OJSC North-West Telecom   Vladimir Akulich said, “The reporting year was an uneasy one for the Company. the ambitious tasks planned earlier were addressed under the impacts of regulatory changes in the industry, severer competition on the communication service market, and liquidity crisis on the world money market.   However, today, when we are summing up the jubilee year's results, we are proud to state that North-West Telecom has successfully adapted to the realities of a developed, highly competitive telecommunications market, and is able to implement new plans, to further improve its business efficiency, and to build a foundation for steady increase of the Company's market value for the benefit of its shareholders."

Upon completion of the Annual General Meeting of the Shareholders, the elected Board of Directors had its first meeting, at which Alexander Nikolayevich Kiselyov was elected Chairman of the Board of Directors, and Dmitry Vladimirovich Levkovsky, Associate Chairman of the Board of Directors.

All the materials for the annual meeting of the shareholders are available on the corporate website of N.W.Telecom, in the “For Investors and Shareholders” section. The official data will be announced after the minutes of the minutes are executed as per Article 63 of the Federal Law on Corporations.