On February 25, 2005 the BoD of North West Telecom approved the placement date for its third bond issue.  Placement is set to take place on March 3, 2005 on MICEX.

The main features of the issue are as follows:  

-          total number of bond in the issue is 3,000,000 (three million) bonds with face value of Rub 1,000  each;

-        total face value is 3,000,000,000 (3 billion) rubles;  

-         state registration number of the issue is 4-03-00119-A dated December 28, 2004.

Term to maturity is 6 years with a call option which can be exercised after 3 years.

Bonds are to be placed at face value.  The auction will be carried out at the rate fixed for the first coupon.  The other coupons (to be paid out on a quarterly basis) will be equal to the first. After three years the Company will adopt a decision about assigning coupon rates for the next three years.

As was the case for the second issue, redemption is to be carried out on a step-by-step basis.

Redemption at par value is to be carried out for bonds on the following dates:

-         1,820 days from the effective placement date of the issue – redemption of the first part will be 30% of the face value of the bonds.

-         redemption of the second part will be 30% of the face value of the bonds.

-          2,183 days from the effective placement date of the issue – redemption of the first part will be 40% of the face value of the bonds.