On May 19, 2008, North-West Telecom’s Board of Directors has determined the 2007 dividend rate recommended to the Annual General Meeting of Shareholders and has approved the agenda for the Annual General Meeting of Shareholders scheduled for June 23, 2008.

North-West Telecom’s Board of Directors decided to recommend that the General Meeting of Shareholders distribute the Company’s profit by the results of the reporting year 2007 as follows:

To dividend payment - RUR 1 565 861 994 or 13.8% of the Company’s net profit of which:

- for preferred shares, at the rate of RUR 3.997 per share (+366% as against 2006),

- for ordinary shares, at the rate of RUR 0.642 per share(+80% as against 2006);

To increase of the Company’s equity capital, RUR 9 738 736 312.

The recommended dividend’s volume is the highest in the North-West Telecom history. Its can possible due the significant increase of net income for the year 2007, associated with the divestment from a 15% stake in Telecominvest, that was finished in October, 2007.

The list of persons entitled to participate in the Meeting is prepared according to the NWT Register of Shareholders as of May 6, 2008.

North-West Telecom’s Board of Directors approved the following agenda for the Annual General Meeting of Shareholders:

1. Approval of the annual report, annual accounting reports, including profits and losses report (profits and losses account) of the Company as well as distribution of profit (including payment of dividends) and losses of the Company according to the results of the fiscal year 2007;

2. Election of members of the Company’s Board of Directors;

3. Election of members of the Company’s Audit Commission;

4. Approval of the Company Auditor for the year 2008;

5. Setting the rate of compensation to members of the Company’s Board of Directors;

6. Approval of the new version of the Company’s Charter;

7. Approval of the new version of the Provisions on the Company’s Board of Directors;

8. Approval of the new version of the Provisions on the Company’s Audit Commission.

During its meeting, North-West Telecom’s Board of Directors considered also other issues relating to the preparation and holding of the Annual General Meeting of Shareholders.