Circulation of North-West Telecom 5th issue bonds was started at the MICEX stock exchange on July 8, 2008. The bonds’ admission to trading was authorized in accordance with the Rules of Admission to Trading and Rules of Securities Trading at the MICEX Stock Exchange.

The bonds’ trade code is RU000A0JPS91. ISIN Code: RU000A0JPS91.

The bonds were floated at the MICEX stock exchange on May 27, 2008. The RUR 3 billion issue was successfully placed in full within one day.

The issue provides for payment of 20 quarterly coupons. The first coupon will be paid on August 26, 2008. The first coupon rate set by the results of the exchange bidding on the flotation day is 8.4% per annum. The premium to MosPrime size for the entire bonds circulation period was fixed at 212 basis points. The rate of Coupons 2-20 will be defined as the sum of the three-month MosPrime rate as set on the last day of each coupon period, and the premium size as set at the bidding. However, the coupon rate shall not exceed the maximum interest rate set at 15% per annum.

The bonds’ circulation period is five years, and they may be redeemed prematurely if so desired by N.W.Telecom on any of the coupon return payment dates between May 25, 2010 and February 19, 2013. A two-year buy-back offer is provided for the issue, with the offer exercise price according to the par value .

As with the previous issues, stage-by-stage retirement of the bonds is scheduled as follows:

• May 22, 2012 : 25% of the face value;
• November 20, 2012 : 25% of the face value;
• May 21, 2013 : 50% of the face value.

Currently, two bonded debts of North-West Telecom (Series 03 and 04) are afloat, for a total amount of RUR 5 billion. The Company’s bond issues are included on the RF Central Bank’s Lombard List, are acceptable by the Bank of Russia as security for direct REPO transactions, and are on the A1 quotation list of the MICEX stock exchange.