22 November, 2005, Tokyo, North-West Telecom JSC and Japan Bank for International Cooperation (JBIC) signed Memorandum of Understanding. The Memorandum is the initial stage of discussion of loan facilities and preparation of loan agreement for credit line. On the part of North-West Telecom JSC Memorandum of Understanding was signed by NWT CEO Vladimir Akulich; on the other part of Japan Bank for International Cooperation – Director General International Finance Department II (Europe, Africa, Middle East, Central Asia and Caucasus) Kiyoshi Nishimura.

Signature of Memorandum of Understanding JBIC proves great investor confidence in North-West Telecom and it’s prospects. During the meeting Mr. Nishimura said: JBIC prizes perspectives of cooperation with NWT – the leading telecom operator of North-west Federal District of Russia. JBIC has long-standing business relations with ? «NEC», corporation, that in it’s turn has been working with North-West Telecom for many years. This fact increases confidence of JBIC to NWT.

Vladimir Akulich thanked Mr. Nishimura for high opinion of the Company and added that cooperation according to the signed Memorandum will enable further development of the network infrastructure of Russia North-west Federal District.

The purpose of Japan Bank for International Cooperation shall be to contribute to the sound development of Japan and the international economy and community through undertaking lending and other financial operations: for the promotion of Japanese exports, imports or Japanese economic activities overseas; for the stability of international financial order; and for economic and social development or economic stability in developing areas; in accordance with the principle that it shall not compete with commercial financial institutions.

Capital (as of March 31, 2005)

 - International Financial Operations: 985,5 billion yen

 - Overseas Economic Cooperation Operations: 6 891,2 billion yen

Budget (FY 2005)

 - International Financial Operations: 1 130 billion yen

 - Overseas Economic Cooperation Operations: 690 billion yen

Outstanding Loan and Other Financing (as of March 31, 2005)

 - International Financial Operations: 8 499,9 billion yen

Overseas Economic Cooperation Operations: 11 495,5 billion yen