OREANDA-NEWS. OJSC VolgaTelecom Board of directors at the session held on September 11, 2007 made the decision to reorganize ZAO Nizhegorodskaya Sotovaya Svyaz (NSS) by affiliating OJSC TATINCOM-T, ZAO RTCOM, ZAO Saratov-Mobile, ZAO Chuvashia Mobile and ZAO Penza Mobile to it. The Board of directors approved the affiliation agreement between ZAO NSS and the five operators.

Also the decision was made to increase ZAO NSS authorized capital to RUR 35 096 513,32 by placing additional ordinary registered uncertified stock to the number of 62 263 shares of the par value of RUR 216,294 per a share. The shares of subsidiary companies will be converted into ZAO NSS shares on certain conditions. The shares are recognized as converted at the time of making entry about discontinuation of activities of the affiliated mobile operators.

Sergey Omelchenko, VolgaTelecom General Director: “The decisions made by OJSC VolgaTelecom Board of directors are logical completion of tremendous activities for cellular assets consolidation, which the Company started more than two years ago. Now we begin the course of law of mobile operators’ affiliation to ZAO NSS and are planning to complete it by year 2007 end. As a result of our cellular assets consolidation a large mobile operator providing services to more than 3 million subscribers will emerge in the Russia’s mobile communication market. OJSC VolgaTelecom enters a new phase of its development related to the operation in the most promising and high-yielding communications markets, and in the first place cellular business is referred to these markets”.

Consolidation of cellular assets on the basis of ZAO NSS will allow VolgaTelecom for improving its operating efficiency, business management and producing appreciable economic and financial effect. In its turn this will improve VolgaTelecom’s competitive capacity in Povolzhie telecommunications market and give new impetus to the development of innovative and universal operator.

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