1. Svyazinvest: 1H2004 Key Performance Indicators November, 2004

2. 2 Svyazinvest holds a leading position in the Russian fixed-line market CompanyJSC SvyazinvestForeign shareholdersOther CenterTelecom51%8%41% North-West Telecom51%14%35% VolgaTelecom51%17%32% South Telecom51%10%39% Uralsvyazinform53%13%34% Sibirtelecom51%7%42% Dalsvyaz51%16%33% Rostelecom51%27%22% State 75% - 1 share Mustcom 25% + 1 share JSC Svyazinvest 7 mega-regionals JSC Rostelecom MGTS Other Controlling stake Blocking stake Company profile: Svyazinvest foundation – 18 September, 1995 Sale of Svyazinvest stake to Mustcom – July 1997 Consolidation of companies – 72 regional telecom operators were merged into 7 mega- regionals in 2000-2002 Share capital (voting stock)

3. 3 JSC North West Telecom 3.4 m lines in service market cap. $372 mn JSC CenterTelecom 5.8 m lines in service market cap. $518 mn JSC South Telecom 3.4 m lines in service market cap. $272 mn JSC Dalsvyaz 1.1 m lines in service market cap. $106 mn JSC Sibirtelecom 3.5 m lines in service market cap. $620 mn JSC Uralsvyazinform 3.3 m lines in service market cap. $1,117 mn JSC VolgaTelecom 4.0 m lines in service market cap. $726 mn Consolidation of telecom operators has enabled Svyazinvest to create economically viable and competitive companies As a result of consolidation, mega- regionals have:  become more investor attractive  reduced the cost of borrowed funds  optimized equipment purchase

4. 4 Svyazinvest in 2003  Revenues from core operations - USD 4.74 bn (up 51.0% against 2002)  Gross revenue – USD 4.92 bn (up 29.0%)  Operating costs – USD 3.64 bn (up 29.0%)  Profit from sales – USD 1.29 bn (up 28.9%)  Payroll – USD 1.02 bn (up 29.6%)  Average number of employees – 350,305 (down 3.8%)  Average monthly salary – USD 256 (up 39.2%)

5. 5 1H031H04 Revenues per line, USD7398+34% Revenues per employee, USD, th6.068.97+48% Lines per employee8392+11% Profit per line, USD1924+26% Domestic/international traffic per line, min237251+5.5% Svyazinvest major economic indicators, 1H2004 1.75 1.24 2.14 1.58 3.05 2.30 1H02 1H031H04 1H021H031H04 Revenues Costs Operating profit, USD mn EBITDA, USD mn USD bn Revenues and costs* Operating profit* and EBITDA* 27.8 29.4 Average number of lines 31.3 1H021H031H04 Lines mn * data include JSC MGTS figures 523 744 559 503 677 906

6. 6 2004 Investment Program Total capex of Svyazinvest group of companies is estimated at USD 1.92 bn 4 mn telephone lines, planned for commissioning, will raise network digitalization rate to 51.3% and expand installed capacity to 35 mn lines. Installed capacity lines, mn Local network digitalization % 31.12 37.5 43.8 51.3 29.7 31.3 33.0 34.9

7. 7 Marketing Strategy 2004 key marketing objectives To strengthen company’s presence in the telecom market To increase market share in certain segments To increase company’s profit margins by enhancing revenue per customer and expanding subscriber base To build a steadily growing client-base by boosting customer loyalty Work with allied operators MRCs’ marketing strategiesClear-cut system of marketing planning and accounting Program of aggressive service promotion for each customer category Regular marketing researches Implementation of customer relationship management concept Improvement of client service Transfer to unified billing system Upgrade of sales and major corporate client servicing systems

8. 8 USD Monthly rate for urban fixed subscribers Tariffs growth for local telephone services in 2004: Urban telephony Rural telephony Residential customers 30%31%31% Business organizations 29%29%30%  In 2003 tariffs for domestic long-distance calls for budget-funded institutions, business organizations and residential customers were brought to a similar level.  In 2004 Svyazinvest will carry on increasing tariffs for local telephone services to the level of economically feasible costs, inclusive of target profitability, as well as optimizing ILD tariff. Average zonal tariff revision for domestic long- distance calls Residential customers Budget-funded institutions Business organizations +2.3% -14.3% +1.5% -8.3% -10.3% -25% Zones 1-4 Zones 5-7 Rebalancing of tariffs for telecom services 5.5 7.5 4.1 5.6 3.0 4.3

9. 9 Tariffs for local telephone services compared to European telecom operators Average monthly rate, US$ Average monthly rate in Russia is still about 70% lower than in Central and Eastern Europe, and is 80% lower than in Western Europe. Average monthly rate at mega-regional companies amounts to $ 4.4 3.93.9 3.7 4.24.2 4.34.3 4.44.4 5.25.2 5.45.4 11.4 15.8 12.5 CenterTelecom South Telecom VolgaTelecom Sibirtelecom North-West Telecom Urasvyazinform Dalsvyaz Cesky Telecom TPSA Matav

10. 10 Corporate governance rating of mega-regional companies (Standard & Poor’s) Company1Н 20031Н 2004Change JSC North-West Telecom5.65.65.95.90.30.3 JSC CenterTelecom5.35.35.85.80.50.5 JSC South Telecom5.25.25.65.60.40.4 JSC VolgaTelecom5.85.90.10.1 JSC Uralsvyazinform6.06.06.26.20.20.2 JSC Sibirtelecom-5.75.7 JSC Dalsvyaz5.35.35.85.80.50.5 JSC Rostelecom-6.46.4  Corporate governance ratings of all mega-regional companies assigned by S&P were above average (5 points out of 10);  Corporate governance ratings of six companies were upgraded;  The holding company’s target for 2004 is to further improve its corporate governance, meeting international standards.

11. 11 Credit ratings of mega-regional companies CompanyRatingOutlookAgency North West Telecom В-StableS&P South Telecom В-NegativeS&P CenterTelecomCCC+ StableS&P VolgaTelecom ВStableS&P Dalsvyaz ВPositiveFitch Uralsvyazinform В/ВB-Stable / Stable S&P/ Fitch Sibirtelecom В+PositiveFitch Rostelecom ВPositiveS&P

12. 12 License Portfolio of Svyazinvest GSM operators - GSM-1800 - GSM-900 - GSM-900/1800 As ofSubscriber baseGrowth rate January 1, 2000113,000 January 1, 2001250,000up 120% January 1, 2002530,000up 100% January 1, 20032,150,000up 300% January 1, 20043,000,000up 50% Subscriber growth Volgathe UralsSiberia Svyazinvest19%19%50%18%18% MTS27%27%27%27%35% Bee Line20%20%5%5%32%32% Megafon22%22%12%12%0% Other12%6%15% Svyazinvest share in the cellular market

13. 13 Cellular Business Development – an important part of Svyazinvest holding’s investment strategy Svyazinvest holds a strong position in regional cellular market and is focused on further reinforcing this position by developing the existing operators:  In Urals region: Uralsvyazinform’s Board of Directors has decided to consolidate the assets of its subsidiary GSM-operators.  In Volga region: VolgaTelecom’s Executive Board is currently working to consolidate the assets of its subsidiary GSM-operators.  In the Far East region: to increase its coverage territory, Dalsvyaz is planning to acquire cellular assets: ZAO Akos, Primorsky krai company- operator and OOO Wireless Information Technologies, a license holder in Sakhalin and Chukotka.

14. 14 Svyazinvest 2004 target performance indicators:  Revenues from core operations - USD 6.32 bn (up 33.4% against 2003)  Gross revenue – USD 6.54 bn (up 32.8%)  Operating costs – USD 4.82 bn (up 32.4%)  Profit from sales – USD 1.72 bn (up 33.8%)  Labor remuneration fund – USD 1.35 bn (up 32.0%)  Average number of employees – 337,300 (down 3.7%)  Average monthly salary – USD 354.6 (up 38.5%)

15. 15 Thank you!