USE OF PROCEEDS

The Company primarily intends to use the net proceeds from the Offerings to provide working capital for existing telecommunications ventures, particularly in Russia and the CIS, to expand the Company's operations, and for general corporate purposes. The Company also intends to use a portion of the net proceeds to repay shareholder loans of $70 million (plus accrued interest). Also, a portion of the net proceeds may be used by the Company in connection with one or more acquisitions. Approximately $20.0 million of the net proceeds from the Notes Offering will be placed in the Escrow Account. See "Use of Proceeds."