Parameters of the fourth bonded loan of OJSC North-West Telecom:

  The total volume of the issue will be 2,000,000,000 (two billion) roubles.

  The circulation period of the bonds will be 5 years.

  The floatation price of one bond is equal to the face value and makes 1,000 (one thousand) roubles per bond. The interest rate of the first coupon will be determined at the auction on the day of floatation. The interest rate of other coupons will be equal to the interest rate of the first coupon.

  The securities to be floated are not convertible.

  The bonds will be floated through public subscription. The starting date of floatation will be fixed by the Company after the state registration of the bonds issue depending on the market situation.        

  A stage-by-stage retirement of the issue is provided for . The bonds will be retired consecutive ly, in parts, on the following dates:

• on the 1092nd day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value ;
• on the 1456th day from the starting date of floatation each bond will be retired partially to the amount of 25% of the face value ;
• on the 1820th day from the starting date of floatation each bond will be retired partially to the amount of 50% of the face value.

  Bonds may be retired ahead of schedule , if the Company wishes so, on the 728th day from the starting date of floatation. The amount of bonus to be paid in case of early retirement will be 20 roubles per bond.

  Funds received from the floatation of the issue are expected to be allocated for refinancing the existing debt and for funding the Company 's investment programme .

  LLC NWT-Finance, a 100% subsidiary of OJSC N.W.Telecom , acts as the surety in the fourth bonded loan.

  ING Bank (Eurasia) CJSC and OJSC AKB Svyaz-Bank are co-organizers of the 4th bonded loan of OJSC North-West Telecom (see the Press-Release dated 3rd August 2006).