Investor Presentation APRIL, 2004 WWW.CENTERTELECOM.RU

This presentation contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the actual results of operations of the Company may be different from the Company's current expectations, and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments. APRIL, 2004 WWW.CENTERTELECOM.RU

KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS OVERVIEW KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS APRIL, 2004 WWW.CENTERTELECOM.RU

CENTERTELECOM CenterTelecom is a leading fixed-line provider of telecommunication services to Russia’s central region, which is Russia’s most densely populated region, covering about 20% of the total population. The Company currently offers traditional telephone services, Internet, IP telephony, data transmission, wave and cable television, wired and VHF radio broadcasting and plans to implement fiber optic lines, SDH networks, and advanced wireless access systems. CenterTelecom is led by a new and shareholder oriented management team with many years of telecom experience that has leveraged the Company’s inherent stability and achieved sales growth of 116.9%, net profit margin grew by 5.8% , while installing over 571,000 numbers over the same period. APRIL, 2004 WWW.CENTERTELECOM.RU

ATTRACTIVE REGION Central Region: covers 3.8% of Russia’s territory 26.2% of total population of 38 mln people (most densely populated) 12.8% of GDP of RUR 1,703 bln   One of the highest monthly income per capita in Russia - RUR 5,732.2 Fixed-line penetration level is 17.3 % 6.4 mln lines installed by end of 2003 Borders with Ukraine and Byelorussia Tver Yaroslavl Kostroma Ivanovo Vladimir Smolensk Kaluga Ryazan Tula Bryansk Orel Lipetsk Tambov Voronezh Kursk Belgorod Moscow APRIL, 2004 WWW.CENTERTELECOM.RU

COMPANY HISTORY Founded in 1890 Privatized in 1994 Came to existence as a united company in 2002 upon merger of 17 regional telecom companies of central region of Russia 2003 is the first year as a united company APRIL, 2004 WWW.CENTERTELECOM.RU

SHAREHOLDER STRUCTURE APRIL, 2004 WWW.CENTERTELECOM.RU

ORGANIZATIONAL STRUCTURE PRESIDENT Carla Cico Shareholders meeting PRESIDENT Carla Cico Board of Directors PRESIDENT Carla Cico Compensation & Benefits Committee General Director PRESIDENT Carla Cico Corporate Governance Committee PRESIDENT Carla Cico Budget & Investment planning Committee PRESIDENT Carla Cico PRESIDENT Carla Cico Audit Committee PRESIDENT Carla Cico Financial Director PRESIDENT Carla Cico Commercial Director PRESIDENT Carla Cico Technical Director PRESIDENT Carla Cico IT Director PRESIDENT Carla Cico Security Director PRESIDENT Carla Cico HR Director APRIL, 2004 WWW.CENTERTELECOM.RU

STRONG MANAGEMENT TEAM New and shareholder friendly management team Management accomplishments during the last 3 years: developed and implemented business strategy unified tariffs policy centralized Internet-traffic centralized work with multinationals achieved all business targets efficient staff management CenterTelecom Service company Ability to find non-standard efficient solutions APRIL, 2004 WWW.CENTERTELECOM.RU

STOCK PRICE DYNAMICS $800 Mln Market Cap. Stock price dynamics (RTS: ESMO, ESMOP). Common stock Preferred stock APRIL, 2004 WWW.CENTERTELECOM.RU

KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS OVERVIEW KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS APRIL, 2004 WWW.CENTERTELECOM.RU

KEY PRODUCTION INDICATORS 6.4 mln access lines installed 27 long distance connection stations 3,9 mln wire broadcasting points 125 000 cable TV subscribers 1 700 Internet-hosts APRIL, 2004 WWW.CENTERTELECOM.RU

MARKET SHARE IN MAJOR SEGMENTS APRIL, 2004 WWW.CENTERTELECOM.RU

KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS OVERVIEW KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS APRIL, 2004 WWW.CENTERTELECOM.RU

OPPORTUNITIES IN THE SECTOR Intellectual network services, packet and integrated services, IP-telephony Introduction of innovations: Intelligent Network Service, IP-telephony, service package offering. Call-center has strong potential and may be used for own needs: telemarketing, Help Desk, Card platform support. Internet services Broadband access through regular radio network. Introduction of Ethernet as a physical and channel level technology will allow to use inexpensive equipment, which brings significant cost reduction for end- users. APRIL, 2004 WWW.CENTERTELECOM.RU

OPPORTUNITIES IN THE SECTOR Long-distance telecommunication services Telephone cards. Expanding IP-telephony services to public and business segments Local telecommunication services Wireless access to general purpose telephone network through DECT and WLL technologies for high net worth customer segments. APRIL, 2004 WWW.CENTERTELECOM.RU

STRATEGY Increase share of value-added services in profit structure Achieve revenue market share in telecommunication services in Central region of 62% by 2006 Average annual income growth of 25% Increase non-regulated services market share to 75% Achieve share of non-regulated services in profits of at least 30% Increase profit share from corporate sector to 52% APRIL, 2004 WWW.CENTERTELECOM.RU

VALUE-ADDED SERVICES INS based services Call-centers Multi-service network around Moscow APRIL, 2004 WWW.CENTERTELECOM.RU

BROADENING OF CORPORATE CLIENT BASE Acquisition of ROSNET Large corporate client base, including Central Bank of Russia 2003 Revenue - $30 mn, EBITDA - $4.8 mn Licenses as alternative telecom operator in 31 region Licenses for data services in 51 region Significant resource allocation to acquire alternative operators in 2004 Development of multi-service network APRIL, 2004 WWW.CENTERTELECOM.RU

GROWTH DRIVERS Traffic growth Tariffs increase Time billing Change of business relationship with Rostelecom APRIL, 2004 WWW.CENTERTELECOM.RU

CHALLENGES IN THE SECTOR. SOLUTIONS Long-distance traffic fees Competition with wireless operators Competition with alternative providers APRIL, 2004 WWW.CENTERTELECOM.RU

KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS OVERVIEW KEY PRODUCTION INDICATORS STRATEGY FINANCIAL HIGHLIGHTS APRIL, 2004 WWW.CENTERTELECOM.RU

KEY FINANCIALS (RAS) 2002 2003 2004E Revenues 16,400 20,890 27,010 Operating expenses 12,132 15,649 19,856 EBITDA 3,337 4,853 6,613 Net profit 1,084 1,503 1,661 CAPEX 4,791 7,563 9,418 RUR Mln APRIL, 2004 WWW.CENTERTELECOM.RU

REVENUE In 2003 gross revenue reached RUR 20.1 mln, 27,5% growth to 2002 APRIL, 2004 WWW.CENTERTELECOM.RU

REVENUE & COST DYNAMICS RUR Mln Revenues Operating costs APRIL, 2004 WWW.CENTERTELECOM.RU

REVENUE STRUCTURE APRIL, 2004 WWW.CENTERTELECOM.RU RUR Mln 63% Private sector Budget organization 62.1% Commercial organization 60.3% 7% 7.1% 30% 7.6% 31.6% 31.2% APRIL, 2004 WWW.CENTERTELECOM.RU

OPERATING COSTS AND EXPENSES In 2003 operating costs and expenses totaled RUR 15.7 mln, 29% increase 2002 APRIL, 2004 WWW.CENTERTELECOM.RU

DEBT FINANCING RUR Mln APRIL, 2004 WWW.CENTERTELECOM.RU

CAPITAL INVESTMENTS In 2003 RUR 7.6 bln were invested (57.8% growth to 2002) APRIL, 2004 WWW.CENTERTELECOM.RU

CAPITAL INVESTMENTS Raised funds Company own funds APRIL, 2004 WWW.CENTERTELECOM.RU

OPERATING HIGHLIGHTS Lines installed Lines in service APRIL, 2004 2002 2003 2002 2003 2002 2003 2002 2003 APRIL, 2004 WWW.CENTERTELECOM.RU

OPERATING HIGHLIGHTS Utilization rate ARPU APRIL, 2004 2002 2003 2002 2003 APRIL, 2004 WWW.CENTERTELECOM.RU

CORPORATE GOVERNANCE AND TRANSPARENCY The best Corporate Governance Code in industry 4 functioning Committees Published financial statements according to IAS for 2002 S&P Corporate Governance Rating – 5.3 APRIL, 2004 WWW.CENTERTELECOM.RU

CONTACTS Andrey Kalinchenko Investor relations manager Tel: +7 095 793 23 19 Fax: +7 095 209 28 29 E-mail: kalin@centertelecom.ru Alexei Mironov CapitalLogica-McBride Tel: +7 916 503 70 90 Fax: +7 095 755 69 71 E-mail: a.mironov@capitallogica.com CenterTelecom at RUSTOCKS: www.rustocks.com/centertelecom APRIL, 2004 WWW.CENTERTELECOM.RU

THE CENTER OF POTENTIAL CENTERTELECOM- THE CENTER OF POTENTIAL APRIL, 2004 WWW.CENTERTELECOM.RU