On 24th February 2011 the National Depositary Centre CJSC acting as the payment agent for North-West Telecom’s series 03 bonds made the payment of the 24th coupon and repaid 40% of the series 03 bonds face value.

In compliance with the Decision on the Issue, partial repayment of the bonds in three stages was approved:

- 25.02.2010 - 30% of the Bonds face value;

- 26.08.2010 - 30% of the Bonds face value;

- 24.02.2011 - 40% of the Bonds face value.

The third part was fully redeemed within the established time, it was carried out at the same time with the payment of the 24th coupon yield under the series 03 bonds of N.W.Telecom.

The rate under the 24th coupon was 8.6% per annum, RUR 8.58 having accrued on each bond.

The total amount allocated for repayment of the principal part of the debt and the coupon yield has been RUR 1,225,740,000.

- RUR 1 200 million for repayment of 40% of the loan face value;

- RUR 25.74 million for payment of the 24th coupon.

The list of the persons authorized to receive the yield under the bonds was made as of 17th February 2011.

The full discharge of the debt liabilities of the Company within the established time has confirmed once again the high reliability of N.W.Telecom’s securities and attractiveness of North-West Telecom as a quality borrower.

The third-issue bonds are interest-bearing documentary bearer bonds with mandatory central storage, series 03 (state registration number 4-03-00119- À of December 28, 2004) placed at the Stock Exchange Moscow Interbank Currency Exchange on March 3, 2005. The volume of the issue is RUR3 billion; the number of bonds is 3 million with the per value of RUR1,000. The maturity period is 6 years. The bonds’ coupon is paid on the quarterly basis. The bonds are included in the RF Central Bank’s Pawn List, are accepted by the Bank of Russia as collateral for direct REPO deals and are included in the quotation list A1 of the Moscow Interbank Currency Exchange.