On 14 February 2008, Board of Directors approved the Capitalization Growth Concept of OJSC North West Telecom for 2008-2012. The document envisages that given favorable external and internal factors the capitalization of OJSC North West Telecom will amount by the end 2012 to the target level of $3.35 billion, an increase of 154% as compared to the current value.

The Concept was built on the assumption that the capitalization of OJSC North West Telecom is affected by both internal and external factors. The priorities internal factors include the financial and economic indicators of OJSC North West Telecom for the relevant period, the presented plans of strategic development, the intensity and effectiveness of the IR activity and measures to develop the secondary market of OJSC NWT securities, as well as the progress in corporate governance. The priorities external factors include the macroeconomic situation in Russia, the present state of and tendencies within the telecommunication industry, and the situation in the Russian and global stock markets. The Concept notes that the capitalization of OJSC NWT will attain the projected level only if the development of Russian economy (and the IT and telecommunication industry in particular) and the stock market remains stable, and if all the goals of OJSC North West Telecom stated in the Company's mid-term development programme are attained successfully.

The measures within the Concept are aimed at:

• increase the market prices of NWT shares, resulting from the use of market mechanisms;
• growth of the foreign investor’s share in the equity capital of NWT;
• effective management of the public debt of NWT;
• maintenance of a stable positive reputation of NWT in the investment market;
• improvement of the information transparency of NWT;
• greater prominence of NWT in the eyes of foreign investors;
• better conditions of capital leveraging;
• higher quality and greater effectiveness of management, and the resultant improvement in the basic indicators of NWT;
• creating a long-term investment attractiveness of NWT.

In order to analyze and evaluate the measures taken within the Concept, annual reports will be produced to evaluate the effectiveness of the financial and economic activity of NWT, the impact of particular measures (by employing both qualitative and quantitative indicators), and finally the impact of external factors on capitalization.

You can read Report-2007 on measures taken within the Capitalisation Growth Concept of OJSC NWT for 2005-2007 at the NWT’s corporate website in the section "Investor and Shareholder".