OREANDA-NEWS. December 5, 2007. On December 1, 2007 the following mobile subsidiaries of OJSC VolgaTelecom were excluded from Uniform State Register of Legal Entities: OJSC TATINCOM-T, CJSC RTCOM, CJSC Saratov-Mobile, CJSC Chuvashia Mobile and CJSC Penza Mobile. In accordance with the decision of CJSC NSS Board of directors these companies served as the basis for establishing regional subsidiaries of CJSC NSS; these regional subsidiaries are operating in Mordovia Republic, the Nizhny Novgorod oblast, the Penza oblast, and the Saratov oblast, the Republic of Tatarstan and Chuvash Republic. So, the new mobile operator of the Volga Federal district has begun its operation since December 1, 2007.

The takeover was based on the resolution of extraordinary general meetings of shareholders of taken over companies in September 2007; these meetings passed the resolution on the companies' reorganization in the form of takeover to CJSC NSS. The meetings also approved the agreements of takeover and transfer acts by and between CJSC NSS and the five companies listed above.

On November 22, 2007 Regional Department of Russia's Federal Financial Markets Service (FFMS) in the Volga Federal district by its orders №№1531-р, 1532-р, 1533-р, 1534-р, 1535-р registered the issues (additional issues) of ordinary, registered, uncertified stock of CJSC NSS to the number of 62 263 shares of the par value of RUR 216,294 per a share. So, the authorized capital of CJSC NSS will grow to RUR 35 096 513,32. The shares of VolgaTelecom's subsidiaries will be converted into the shares of CJSC NSS on terms and conditions defined by the agreements of takeover. The shares are recognized as converted at the time of making the entry about discontinuation of activities of taken over mobile operators.

Currently, CJSC NSS is preparing a package of documents for registration by Regional Department of Russia’s FFMS in the Volga Federal district of the report about the results of securities placement; this report is a resulting document stating the fact of CJSC NSS shares placement in accordance with the provisions of decisions about the issue (additional issue) of securities, these decisions being approved by Regional Department of Russia's FFMS in the Volga Federal district.

Sergey Omelchenko, OJSC VolgaTelecom General Director: "OJSC VolgaTelecom is entering a new path of its development; the Company is gaining momentum in most promising and high-yielding telecommunications markets, and in the first place cellular communication is related to these markets."

Mikhail Petrov, CJSC NSS General Director: "As per forecasts, in 2007 the total subscribers base of CJSC NSS will account for 2,3 million. The company’s plans comprise the development of new markets, the construction of networks of taken over companies and also the winning of subscribers base with a view to provide in future convergent mobile and fixed line services jointly with OJSC VolgaTelecom."

Consolidation of cellular assets on the basis of CJSC NSS will allow VolgaTelecom for improving operations and business management efficiency and will produce appreciable economic and financial effect. This, in its turn, will raise VolgaTelecom competitive capacity in telecommunications market of the Volga region and give new impetus of development of innovation and universal company.

"Strategy of OJSC VolgaTelecom cellular business development" was approved in March 2006 by the Company’s Board of directors. The objective of OJSC VolgaTelecom cellular business development is to consolidate the positions in mobile communication market of the region, to enhance business efficiency and competitive advantages of GSM assets due to integration of mobile and fixed line communication.