September, Investing in Russian Telecoms

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. September, 20052

CFD Market Share – 2005 forecast Local calls – 94.3% Mobile telephony – 3% CenterTelecom Is the Leading Fixed Telecommunications Provider in the Central Federal District of Russia CenterTelecom today:CFD is the most populous area of Russia 17 regions CFD square is 650,700 square km (3,8% of Russia’s territory) Population is 38 million people (26,2% of Russia’s population) Share in Russia’s GDP - 12,8% Share in Russia’s telecoms market – 43,4% Long distance calls – 81.7% Data transfer, Internet, ISDN IP-telephony, INS,) – 45.3% 15 branches 6,8 mln. access lines installed Internet users 6,3 mln access lines subscribers mobile subscribers: GSM NMT thsd. cable TV subscribers September, 20053

CenterTelecom’s Strategy Proactive development of the value added services Keeping of the share in market of traditional services Development of sales system for corporate and VIP-clients Costs optimization Tariff policy optimization,Traffic and income growth provision Improvement of corporate governance level and Corporate Restructuring Optimization of the quantity of personnel Development of the positive credit history Expansion of the structure and range of financial tools Attraction of the cheap financial resources from international stock market Improving appeal in capital markets Improving efficiency Improving competitiveness 4September, 2005

Capital Expenditures Share of CAPEX in revenues: – 10% growth 2005 – forecast CAPEX cutting stipulated by Company investment programme. forecast RUR, bln. CAPEX dynamic 36% 78% 82% 68%27% 29% 64% 4,8 22% 18% 32% 73 % 71% 7,6 9,8 5,4 4,4 6,3 5September, % -19% 18% 15% 20% 39% 36%

Income Structure – Communication services 6 Other 14% Other 14% Local communications 43% Local communications 47% LD and International communications 39% LD and International communications 34% New services 4% New services 5% (forecast) September, 2005 RUR, thsd.

Decrease of dependence on tariff profits is the vector of the further development and the keystone to the company’s future success CenterTelecom on the telecommunication market of the Central Federal District - forecast * Including affiliated businesses Keeping Company’s leadership at CFD telecoms market and qualitative change in profit earning by wide application of broadband Internet services 7September, 2005

Local Telecommunications Overview – A Competitive Environment Capacity Launch (thousands of telephone numbers) Subscribers’ growth (thousands people) Number of lines per employee (units) Applications for telephone line installation (thousands) +9,4% +5,2% +4,2% +5,2% +10,5%-58,8%+25% -17,1% +1,5% +3,3% -4,4% -82,9% +98,1% Putting into operationReplacement September, 20058

9 Internet Volume of the transferred data on Internet allocated lines, Gbyte. Internet switched connections, mln min Only for I half year 2005 the quantity of xDSL users has increased 1,7 times in comparing to xDSL services user's base dynamics September, 2005

Managing Costs In 2004 operation expenditures grew 26,4% in comparison to 2003 caused by investment politics (input of number capacity, digitalization level increase, introduction of billing systems (Oracle, Amdocs)). RUR, thsd 10September, 2005

Financial results (RAS) RUR, Mln Profit and expenditure dynamics RUR, Bln EBITDA dynamics RUR, Bln 3,6 5,1 5,4 7,0 6,9 8,3 11September, 2005

Operations efficiency indicators Number of lines per employee (unit) Number of employees -6,6% -1,8% -3,2% -2,1% -3,0% 12September, ,4% +7,2% +2,2% +5,2%

CONTACTS Deputy Director General – Commercial director Sergey Pridantsev Tel.: (095) Fax: (095) , THANKS FOR YOUR ATTENTION September, 2005