The Russian Institute of Directors (RID) and Expert RA agency have released a corporate governance rating for 137 Russian companies. As of April 1, 2004, North West Telecom found itself among the companies with positive corporate governance practices, receiving a B++ rating was assigned.

Under the RID-Expert RA rating, companies were assessed according to four indicators:

• shareholders’ rights,

• disclosure of information,

• performance of management and supervory bodies,

• compliance of interests of other parties concerned and social responsibility.

The rating was assigned by comparing the companies’ corporate governance track records with provisions found in Russian legislation, recommendations of the Code of Corporate Conduct and standards of Best Practices set by portfolio investors. Moreover, data from inquiry forms filled by companies and public information were used in making the rating.

The assignment of the Corporate Governance Rating by RID-Expert RA underscores North West Telecom’s positive corporate governance track record, marked by its informational transparency and effective performance of committees attached to the company’s board.

Moreover, North West Telecom’s corporate governance rating (CGR), assigned by the international rating agency Standard & Poor’s, is constantly under revision. There are only 13 Russian companies that have managed to win a CGR from Standard & Poor’s.

North West Telecom intends to take further measures to improve its corporate governance standards, raise its market cap and become more attractive for investors.