The Board of Directors of JSC North-West Telecom approved the Forecast of JSC North-West Telecom Development for the Years 2007 – 2010(12) and the Financial Strategy of JSC North-West Telecom for the Years 2007 – 2009.

The adopted Forecast of Development takes into account the changes in the RF legislation and the results of the structural reorganization of the company that has been carried out, besides, it reflects the plans of JSC North-West Telecom in strengthening its positions in the telecommunications market of the Northwestern region in connection with the pursued policy of enhancing the client orientation of the company's business.  

The approved Forecast of Development has been made up taking into account the priorities of company's marketing, engineering and financial policies and establishes the following key figures:

·  a subscriber base of at least 4.5 million subscribers by 2010;

·  a growth of EBITDA and OIBDA margin by at least 1 p.p. annually, so that by the year 2010 the EBITDA profitability is at least 39%, and the OIBTDA profitability is at least 44%;

·  net profit profitability - at least 10%;

·  a volume of investment not exceeding RUR 6 billion per year with an emphasis on investment ensuring a growth of the company's income within a medium-range forecast and using the procedure s of control over investment efficiency.

The adopted financial strategy determine s the basic directions of the fiscal policy of the Company within a medium-range forecast and establishes target parameters of the key financial indices for the years 2007 – 2009. To improve the investment attractiveness and to maintain the financial stability, the company will put special emphasis on diversification of funding sources (the potential funding tools will include the floatation of rouble bonds, international syndicated loans and CLN), extension of the average periods of borrowing, maintenance of a high level of liquidity and improvement of the financial risks management system. The debt load will remain at the moderate level , which has been reflected in the following approved key figures:

·  Maintaining the share of own funds in liabilities at the level of at least 55%,

·  Maintaining the debt to EBITDA index at the level not exceeding 1.6,

·  Maintaining the liquidity ratio at the level of 1.0.

Vladimir Akulich, Chief Executive officer of JSC North-West Telecom noted: "The approval of the Forecast of JSC NWT Development for the Years 2007 – 2010(12) and the "Financial Strategy of JSC NWT for the Years 2007 – 2009" is, without doubt, a significant event. The approval of these interrelated documents establishing the development of the company for a long time is a qualitatively new level of implementing the strategy of further development of the company and the next step on the way of improving the long term investment attractiveness of JSC North-West Telecom."