On October 25, 2002 the Federal Securities Commission of Russia registered issue # 1332/r for additional common nominal non-document shares of OJSC VolgaTelecom (NNSI) in the amount of 158,479,418 for a total of rub 792,397,090 with par value of rub 5 per share and type A preferred nominal non-document shares (NNSIP) in the amount of 52,826,377 for a total of rub 264,131,885 with par value of rub 5 per share.

The shares are to be placed as part of the company's total shares outstanding by swapping the securities of the 10 telecom operators which are scheduled to merge with OJSC VolgaTelecom: Kirovelektrosvyaz, Martelecom Republic of Marii El, Svyazinform Republic of Mordovia, Elektrosvyaz Orenburg region, Svyazinform Penza region, Svyazinform Samara region, Saratovelektrosvyaz, Elektrosvyaz Ulyanov region, Udmurt Telecom, Svyazinform Chuvash Republic.

In addition, the Federal Securities Commission issued resolution # 1333/r dated October 25, 2002 and thereby registered 192,666 bonds of OJSC VolgaTelecom for a total of rub 90,260,600, which are to be placed by swapping with the bonds of three merged entities (OJSC Elektrosvyaz Orenburg region, OJSC Saratovelektrosvyaz, OJSC Elektrosvyaz, and OJSC Elektrosvyaz Ulyanov region). 

As of November 30, 2002 the merged companies are to be delisted from the Unified State Register of Legal Entities, and all assets, property and staff of these companies are to be transferred to OJSC VolgaTelecom, which includes swapping the shares of the merged entities with those of OJSC VolgaTelecom.  Thereafter, the 10 merged telecommunications operators will continue to operate as branches of OJSC VolgaTelecom.  

         The financial consultant of the merger process for Volga Region operators is ZAO Gamma Kapital.