On March 6, 2008 OJSC North-West Telecom completed fulfilling its obligations related to repurchase of its Series 03 bonds.

In accordance with the Resolution on the Issue the bond holders might present their bonds for repurchase in the period from February 22 till February 28, 2008. The bonds purchase and sale transactions were made on March 6 at the MICE stock exchange at a price amounting to 100% of their par value.

2,177,779 bonds were presented for repayment, which made about 73% of the total issue size. The price of the bonds presented by their holders for repurchase, including the accrued coupon return was RUR 2,181,300,000. All the obligations provided for in the N.W.Telecom offer were fulfilled in due time and completely.

Svyaz-Bank was the bonds managing underwriter selected in an open building held by N.W.Telecom in December 2007.

The annual interest rate for the coupon periods left before the repayment (13th through 24th) is 8.6%.

The fulfillment by OJSC North-West Telecom of its obligations related to the bonds repurchase has confirmed once again the Company’s reputation as a reliable borrower justifying the investors’ confidence in its securities.

The third issue documentary bearer bonds for mandatory centralized storage, Series 03 (State Registration No. 4-03-00119-? of 28.12.2004)were placed at the MICE stock exchange on March 3, 2005. The size of the issue is 3 billion rubles, and the total number of bonds in the issue is three million, at the par value of RUR 1,000 each . Floatation period: 6 years, allowing for premature repayment on 6.03.2008. The coupon return on the bonds was paid quarterly.