Megafon : Resolutions taken by the Board of Directors

To approve a new program to issue interest-bearing nonconvertible bearer exchange bonds (the 'Program') and the legally required documentation for the Program, including the Program terms & conditions and the prospectus (together the 'Documentation').

The Program remains subject to the registration of the Documentation by the Moscow Exchange ('MOEX'). The Documentation will be filed with MOEX for registration in due course. The Company will make the final decision on the timing and terms for the placement of bonds under the Program at a later stage following the registration of the Documentation by the MOEX and subject to market conditions. The Board approved the following key terms for the Program:

(1) Total maximum principal amount The total maximum principal amount of the Program will be RUB 100 billion.

(2) Maturity date Each bond issued under the Program will mature on the date no later than the 10,920th day (the 'Maturity date') following the date when the placement of the respective bond commences (the 'Placement date').

(3) Coupons The coupon rate and type for bonds issued under the Program shall be determined either by an auction to be held on the relevant Placement date or by book building exercise to be held prior to the relevant Placement date. The coupon rate of bonds issued under the Program will be subject to further determination in accordance with the Documentation (for coupons, which are not determined at the relevant Placement date). Pursuant to the decision of the Company's Board of Directors, the coupon rate shall not exceed 12% p.a.

(4) Repayment schedule The principal amount of each of the series of bonds comprising the Program shall be repaid either in a single payment on the relevant Maturity date, or as set out in the amortization schedule for the relevant series of bonds determined by the Company prior to the relevant Placement date in accordance with the Documentation.

(5) Early repayment The Program provides for early repayment of bonds in certain cases at the Company's discretion or subject to holders' request (depending on the applicable legislation requirements and the provisions set out in the Documentation).

The Company will make further announcement(s) to notify the public on the development of the Program as and when appropriate or as required under the Listing Rules and/or applicable national laws and regulations.