On March 15, 2010 the rating agency Standard & Poor’s confirmed the long-term international credit rating of North-West Telecom at the ÂÂ- level, outlook Stable. The national rating of North-West Telecom was confirmed at the ruÀÀ- level.

The agency’s analysts note that the following factors were positive for the rating:

- strong market position of N.W.Telecom in the fixed-line telephony;

- improvement of   the Company’s business efficiency;

- moderate debt levels and adequate liquidity.

According to experts, the crisis factors in the economic environment have not affected the North-West Telecom’s business. Due to the continuously growing receipts from “new services”, in particular in the broadband Internet access segment, and to cutting of the Company’s costs and optimized investment size in 2009, North-West Telecom got a positive cash flow by the end of the year.

On the other hand, the following factors restrain further growth of North-West Telecom’s rating:

- limited ability to diversify the business due to the Company is not present in mobile business;

- higher competition level in the region compared to peers,

- uncertainty about industry regulation.

The outlook Stable reflects confidence of analysts of Standard & Poor’s that North-West Telecom will continue enhancing its business efficiency and maintaining a reasonable finance policy and a sufficient liquidity level.

For more detailed information see www.standardandpoors.com.